Scams will impact foreign investments: CII

August 24th, 2012 - 5:13 pm ICT by IANS  

Chennai, Aug 24 (IANS) The various scams hogging media headlines will impact foreign investments in India, Confederation of Indian Industry (CII) president Adi Godrej said Friday.

And for the sentiment to improve, the government’s decision-making process should be transparent, he said.

“The investor sentiment would improve if the decision making process is transparent. The government decision making should be transparent,” said Godrej at a news conference here, responding to a question on the impact of scams on foreign investment in the country.

He also said corruption would go down if the government’s decision-making is made transparent, adding that the CII has suggested to the government that the case-to-case permissions should not be there.

According to Godrej, the negative sentiments created about India like the changes in tax laws, labour violence, and power grid failure are also impacting investments.

On CII stand on recognising labour unions by corporations, Godrej said: “We are not against legal labour union.”

Asked about the disruption in Parliament, Godrej said: “Political grand standing is unfortunate. Parliament should be allowed to function.”

He said political parties should join hands together on national interests, economic issues so that the economy grows.

To another question on whether CII would try to convince various states to pass a law making it compulsory for the companies to recognise worker unions, B. Santhanam, deputy chairman of CII Southern Region, said: “We don’t have a view on such a law.”

“We are telling the companies to solve the labour issues at the unit level and not allow them to escalate. Further the next generation of labour leaders does not understand the process of negotiation and industrial relations,” Santhanam added.

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