Transparent policies needed, says Swraj Paul

Foreign investors are petrified about investing in India as there is lack of transparency in dealing with them, Lord Swraj Paul, founder of Caparo Group, has said.

India needs less but very transparent policy, Paul told Business Line in an interaction ahead of his Dr Stya Paul inaugural Lecture in Delhi recently. He said that the Government should announce the rules for entering the Indian market and only those who fit the criteria should be allowed to enter. With such an approach, an investor will waste less time of the Government and there will be less chances of corruption, he pointed out.

Corporate governance The legislative changes brought about by the new company law would only work if leaders of business embrace not only the letter of the law but also its spirit, said Paul.

“If you want to do business in today’s world, you cannot ignore governance. And setting up structures, committees and rule books is not enough.

“The Owners, the Chairman, the Chief-Executive , and the Board all need to lead by example. It is the top which has to set the tone,” he said recalling Nobel Laureate Professor Samuelson’s quote “The bottleneck is always at the top”.