In order to lift the global investor's currently sagging interest in India, the government should steer clear of nationalism _ at least in the short term _ as investors are wary of nationalistic governments, especially against the backdrop of the nuclear tests earlier this year, says Alexander T Lennon, deputy director, Centre for Strategic & International Studies, Washington, USA.
In an exclusive interview with Business Standard, Lennon said: "The fallout of the nuclear tests will not have any long term ramifications, but it is advisable for the ruling coalition to keep away from the nationalistic platform, for the time being. What is currently lost is the potential for further investments into the country."
Further, he said Indian corporates must widen the scope of social responsibility and undertake to contribute towards the well-being of the local community. He pointed out that the days are gone when it was the government which was wholly responsible for social well-being. In an era of liberalisation, the corporate world must do its bit towards social well-being.
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He said state governments in India must get together and take a pro-active role in putting pressure upon the Union government to lift trade barriers to ensure integration of India with the global economy.
Lennon said that it is also the state government's responsibility to see to it that India Inc emerges as a global competitor, and must come forward with suggestions for formulating the country's foreign policy.
"Rather than waiting for the Central government to lay down policies, the state governments must play a vital role in bringing issues to the notice of the union government that need addressing, especially in the present scenario, where globalisation seems to be the key to economic progress," Lennon said.
This is especially required because of the sheer size of the country and wide regional disparities, he pointed out. He further said that the key to progress for emerging economies is to exploit the age of information technology which undoubtedly means empowerment of governments, businesses and individuals alike.
Earlier, addressing the second day's session of AIMA, Lennon drew attention towards the global trends and their implications on world economies.