The mood among U.S. investors is highly positive towards Indian road and port infrastructure sector, and the negative remarks about the country’s investment climate in a recent report of the U.S State Department would have no impact on investment flow, Union Minister Nitin Gadkari has said.
The Minister is in the United States to woo U.S. investors to Indian highway and port sectors that he is in charge of. Mr. Gadkari said he would also look for ways to adopt latest U.S. technologies in road safety, highway construction, and waterways management. “Though India has also been making progress in technology, we can learn a lot from the U.S,” the Minister told The Hindu in an interview.
Modi regime reneging on promises?
That the Modi government has not delivered the reforms it promised two years ago is a recurring complaint among U.S policymakers and investors. The State Department Investment Climate Statements recently echoed this sentiment. Asked for a response on the report, Mr. Gadkari limited it to his own Ministry and himself.
“If you are going to check our track record, it is the best in the country’s history. From investments in road construction to project implementation, all things are moving very fast. The next year, ending in March, 12 major ports and Shipping Corporation will have more than Rs. 6,000 crore in profits. Total atmosphere has changed. As far as investment is concerned, I am very much confident that people are eager to invest in Indian road and port sectors.”
‘Whatever I’ve promised, I’ve delivered’
Asked whether the perception that the Modi government made a lot of promises and failed to deliver them was correct, Mr. Gadkari said: “In India, no one will ask me this question. Because, people are appreciating the work of the Ministry. As far I am concerned, I am very punctual and particular – I never give false promises. Whatever I have promised, I have delivered.”
Responding to the concern among U.S investors that the Modi government could not push through changes in the land acquisition law, the Minister said it was no longer a roadblock for infrastructure development.
‘Land acquisition not an issue in India’
“Land acquisition is not an issue in India. 403 projects with the NHAI had faced land-related issues when we took over. The Cabinet took 21 decisions to deal with the situation, which is now totally changed. There are only 20-25 projects that still face some land-related problem. We have deposited Rs. 20,000 crore with State governments to speed up land acquisition,” Mr. Gadkari said, adding that on the PM’s specific instructions the Ministry has advanced deadlines for two bypasses in India to 400 days. “We are working day and night to complete the projects.”
‘Of course, fluctuation in rupee exchange rates’
Mr. Gadkari said a McKinsey study estimated 12 lakh crore investment potential in India’s port and highways sector, which global pension funds and other investors find extremely attractive. The Minister said the only unfavourable component was the fluctuation in rupee exchange rates.
The government’s decision to let Reserve Bank Governor Raghuram Rajan leave at the end of his current tenure -- an unusual move -- would not have any impact on investment flows, the Minister said. Mr. Rajan’s forthcoming exit has raised concern among U.S investors.
“That is an administrative matter. I feel that in the system in which new people are coming, some are taking retirement, and that is part of the way the system functions. As far his contribution is concerned, we all appreciate that.”
