CII makes a pitch to ‘invest north’

The CII is making a pitch to southern businessmen to invest in more projects up north. In early November, CII, in association with eight states in northern India and the Union Territory of Chandigarh, plans a mega conclave in Gurgaon to showcase investment opportunities in this region.

Richard Rekhy, Co-Chairman, Invest North 2012 and Head of Advisory for consultancy, KPMG India, said at a press conference that in the past decade much of the investments have gone to western and southern India. Admitting that many foreign investors found it difficult to do business in India, Mr Rekhy said nevertheless they would come for a slice of the large Indian market.

Rekhy said the north had a strong manufacturing and engineering base and the region would look to attract investments in these sectors. The ‘offset clause’ for the large defence and aerospace contracts, which requires that foreign companies source 30 per cent locally, will benefit domestic companies, he said.

Answering a question on the recent collapse of the power grid in the North and the strained labour relations in Maruti’s Manesar plant, Mr Rekhy said that it was a concern for investors and states would need to deal with it proactively.

He said the proposed Delhi-Mumbai industrial corridor could transform the region, create seven new cities and provide a good connection to ports for the landlocked northern region. “It can change the logistics for north India,” he emphasised.