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Anti-India terrorism 'entirely
external driven': US

"India is a victim of terrorism. The problem in Kashmir is cross-border terrorism. In our judgement, it (terrorism in Kashmir) is entirely external driven," US ambassador to India Robert D Blackwill told a FICCI meeting on 'US-India Economic Relations - The Missing Piece' in Delhi.

"If peace and stability can be brought, it (Kashmir) is a fabulous destination (for tourists)," he said, but declined to make comments on prospects of peace in the light of successful assembly elections in the state.

Blackwill said tensions between India and Pakistan after December 13, 2001 (when terrorists struck at Parliament) had raised concerns in the minds of American investors about India being a safe bet for their investments.

"Within the US business community there is an erosion of confidence and doubts whether the sanctity of contracts will be honoured in India," he said apparently referring to Enron's troubled $2.9 billion Dabhol project.

Asked if a single project was responsible for erosion of confidence, he said, "No single project contributed to it. There is no question that tensions between India and Pakistan and communal violence have dampened investors' urge to come into the Indian market."

Communal violence in Gujarat has made Americans wary of even visiting India as tourists, he said.

"India is not an attractive destination. To attract investment, a long period of stability and of no serious communal violence is essential," he said.

Americans, he said, also hesitate to invest in India because of the uncertainty over India's economic reforms. "The divestment debate in the last two months is only the latest example," Blackwill said.

Potential US investors feel Indian taxes and tariffs were too high and there was much government interference over business decisions, Blackwill said.

"US pharmaceutical and biotech companies would expand their presence if India had a modern legal framework to protect product patents," he said while drawing parallels with China, which had forged ahead of India on most economic measures and was an attractive destination for US investors.

More reports from Jammu and Kashmir

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