Observing that India had adequate potential to attract foreign investment, eminent Non-Resident Indian Ram Buxani on Saturday said the country had to sell itself as a brand name not only to market its products abroad but also to attract NRI investment.
The potential of India to attract foreign investment was stiffled either due to lack of sufficient laws or because of non-implemention of laws, Buxani said on the sidelines of the high-powered NRI Summit 'India Calling 2004.'
Buxani, former Chairman of Overseas Indian Organization, United Arab Emirates, said it was high time India started selling itself as a brand by following the example of Japan.
In the early 1960s, Japanase goods were not so popular but the country later changed its approach and started producing quality goods. This resulted in it acquiring a brand name worldwide.
Today, 90 per cent of Japanese goods are not made in Japan but in other countries, Yet they are popular all over the world because Japan itself is a brand name.
India too will have to follow Japan's example by introducing attractive packaging for its products and laying emphasis on quality, he said.
Commenting on information and technology, he said India was lacking in producing hardware although in software it had done wonders.
It was equally important to produce hardware, he added.
Another area in which India would have to focus is on research and development. Citing Japan's example, Buxani said more than 7 per cent of revenue is invested by every manufacturing company on R&D every year and for this investment benefit is also provided in taxation.
In India, manufacturers have to change their mindset and invest in R&D instead of clamouring for competition and sacrificing quality in producing goods, he opined.
About the disinvestment policy being scrapped by the Indian government, Buxani claimed the move was one of the ways to remain in power to satisfy components of the coalition.
He felt the government should invest in those areas where it feels there was potential to generate employment, develop the segment and ultimately leave it to the private sector to do business.
About foreign direct investment, Buxani said efforts should be made to attract foreign direct investment in sectors such as infrastructure, connectivity of rivers, telecommunications, hospitality, railways and in those segments where private sector within the country was not responding.
Foreign investment in railways would change the face of the country. India could also introduce bullet trains with speed of 500 km per hour just like Japan has done it.
With this speed, it would be possible to reduce the commuting time between Mumbai and Delhi by nearly one-fourth of the existing pattern, Buxani, Vice Chairman of International Traders (Middle East) Ltd, said.
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