Blasts will not affect investment climate: Bangalore’s industry leaders

July 27th, 2008 - 10:41 am ICT by IANS  

By V.S. Karnic
Bangalore, July 27 (IANS) The serial bomb blasts that shook India’s IT hub Friday will not have any negative impact on Bangalore’s reputation as a peaceful city and safe investment destination, industry leaders say. However, they expect the state administration to step up vigilance and improve security to ensure the situation does not go out of hand.

“It is like a blip on the radar. The mood and sentiment of the people will bounce back and investment climate will not be affected,” D. Muralidhar, president of the Federation of Karnataka Chamber of Commerce and Industries, told IANS. FKCCI is affiliated to the Federation of Indian Chambers of Commerce and Industry (FICCI).

“The blasts, naturally, will be a shock to people both here and abroad because of the wide publicity they have received. The incident however will be forgotten soon,” he said.

“I really do not see the incident as having any adverse impact on investment,” Muralidhar said.

“Fortunately Friday’s blasts did not cause much damage or human casualty, though it is sad that one person was killed in them.

“We have a pro-active chief minister and we expect measures will be taken to prevent recurrence of such incidents,” Muralidhar said.

T. Ramappa, secretary general of the Bangalore Chamber of Commerce and Industry, also felt the blasts will have little impact on investment and other economic activity.

“There will be no serious impact on investment and other activities in the medium and long-term,” he said.

At the same incidents like these do cause concern among the people and the government will have to look into the security aspect more closely.

“It is just one serial blasts. I really do not see any negative fallout,” Ramappa said.

“Yes. Tourism may be little affected. But here too unlike Delhi, Rajasthan and some other places, Bangalore does not get many western tourists. Hence whatever impact will be temporary,” he said.

Arvind N. Burji, president of Karnataka Small Scale Industries Association, felt such incidents could affect investment.

“Government and police will have to seriously work to prevent these violent incidents as they can scare away potential investors,” he said.

T. V. Mohandas Pai, Infosys director and head-administration, and Kiran Mazumdar Shaw, chairman and managing director of Biocon, had said on Friday that incidents of this nature do raise concern among the people. Both hoped the government will take action to improve the security situation in the country’s outsourcing hub.

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