Don't see things progressing in India, no plan to invest there: Lakshmi Mittal

Discussion in 'Economy & Infrastructure' started by VIP, Jul 29, 2012.

  1. VIP

    VIP Ultra Nationalist Senior Member

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    LONDON: Indian steel magnate Lakshmi Mittal has no immediate plans to invest in India, where his recent attempts to build steel plants in Jharkhand and Odisha reportedly face local opposition and wrangles over land acquisition, says a media report.

    Mittal, who is Britain's richest individual, told Britain's Sunday Times that India remained a priority for him but not for investment.

    He said: "India remains a priority but not for investment. I'm not locating capital to India or China as I don't see things progressing there. We can't remain stuck, so we move on. Now our priority is to reduce debt, we sell non-core assets. But we continue to invest in mining and become self-dependent."

    Asked about his strategy to target India and China for growth, he said: "We've not succeeded in both countries".

    Mittal's wealth has reportedly halved since 2008 to 12.7 billion pounds.

    Recession and lower demand for steel may force his company ArcelorMittal to close some of its Europe operations, leading to more job losses.

    Admitting the likelihood of job losses, he said in the interview: "I have all the sympathies with the people who will be affected by this action. But the positive side is that we will be saving jobs for many times more people."

    Politicians in Europe, he said, need to sort out the economy, and added that the second half of the year would be very challenging.

    On the lower demand for steel, he said: "If we don't have the orders, what can we do? We produce what we can sell, and we have to build a sustainable business model."

    Mittal, who was one of the torch bearers for the Olympics Torch Relay, has contributed 20 million pounds towards the ArcelorMittal Orbit near the Olympics Stadium.

    Don't see things progressing in India, no plan to invest there: Lakshmi Mittali - The Times of India
     
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  3. sob

    sob Moderator Moderator

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    The Government needs to bring it's house in order, so that we can get the much needed investment in India.

    It is the investment in Industries and Infrastructure that is urgently required not in Retail malls like Wal Mart.
     
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  4. Yusuf

    Yusuf GUARDIAN Administrator

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    Actually I feel the contrary. This Mittal comes across as an eternal whiner. Every couple of months he keeps coming out with a statement about how bad india is as an investment destination. He wants to put some kind of pressure and get his work done in a manner he gets maximum concessions. Even if it means bending rules with political nexus. This is my reading.

    I mean just yesterday I posted a thread about how US corporations are spending top dollars lobbying inter own country so that their lawmakers take up their case to get investment opportunities in India. And here we have an eternal whiner who probably does not want to go the extra yard (not even a mile) to invest in the country he was born in.
     
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  5. pmaitra

    pmaitra Moderator Moderator

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    :rotflmao:

    +1

    Let him whine, and India should tighten the screws on iron ore exports. Either he will set up shop in India, or someone else will. There should be a ban on export of iron ore and pellets, and partial ban on export of steel profiles, sheets, etc.. India should focus on export of finished products.
     
  6. sob

    sob Moderator Moderator

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    Lobbying for concessions and exemptions is a time honoured activity. Case in the point is the entry of Harley Davidson in India. Check out the lobbying done by none other than Hillary Clinton and the exemptions given to the bike manufacturer. You will get my point.

    The lobbying done in the Us is to arm twist India to relax their rules in favour of US Corporations. It is not that they are being denied entry into India-- as your post suggests.
     
  7. amitkriit

    amitkriit Senior Member Senior Member

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    He was virtually kicked out of Jharkhand because he wanted too much from the government. He thinks just because he has got money he can arm-twist the governments. His fragile ego was badly shattered in India.
     
  8. Mr.Ryu

    Mr.Ryu Regular Member

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    Even the UPA is not aware which of their ally will run away next or which minister will be caught in scam,

    How will India get investment ?
     
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  9. Energon

    Energon DFI stars Stars and Ambassadors

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    In this equation India is the bigger loser. India is a terrible place to do business, everyone knows this not just Mittal. The Indian people want to believe in this myth of "India Shining" etc. but unfortunately that's just a facade. The Indian establishment is its own worst enemy; people always try politicizing the issue along party politics, but for an outsider like me it is easy to see that the entire set up is messed up and it really doesn't matter who's favorite political party is in charge. India is shooting itself in the foot and that is really unfortunate, not only for Indians but also the rest of the world who has so much to gain from fostering a robust economic relationship with India.
     
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  10. no smoking

    no smoking Senior Member Senior Member

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    As I always said, industrilization comes with a high price: pollution, sweatshop, etc. It is like a big surgery to a country: first it destroy everything-from social network to moral standard, then it will rebuild a new one. It will bring great pain to the country at each stage. The indians' problem is not political or politicians, it is the public. So far, indian public hasn't been able to reach the agreement: whether or not to go through the painful industrilization. Obviously, some groups desperately want while others not.
     
  11. roma

    roma NRI in Europe Senior Member

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    this is the problem with the "democratic" system - indian style
     
  12. Mr.Ryu

    Mr.Ryu Regular Member

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    But we still have ways to remove them and choose lesser evil.

    I see this as the Solution in our "democratic" system ;)
     
  13. VIP

    VIP Ultra Nationalist Senior Member

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It's because socialist mindset of people from past 60 years. People need to change otherwise we'll be back in stoneage. Industry is necessary and to establish it, political will needed. India is becoming literate day by day now. So what would these graduates do ?? You can't give all of them govt jobs as govt can't run every industry. "Jiska Raja Vyapari, uski Praja Bhikhari." Business should be done by people,not by govt.
     
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  14. parijataka

    parijataka Senior Member Senior Member

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    Jiska Raja Vyapari, uski Praja Bhikhari - is that a Gujarati saying...?
     
  15. VIP

    VIP Ultra Nationalist Senior Member

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Yes, it's Gujarati saying, I translated it.... ;)
     
  16. Energon

    Energon DFI stars Stars and Ambassadors

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    Actually I think the problem starts with the government, not the people. The biggest obstacles in India's industrialization process are structural in nature, starting with the lack of land and labor reforms. Due to years of dysfunctional socialist policies and consequent governmental monopoly over industries, the establishment has now assumed a bastardized role in the liberated economy where they are both regulator and participant/competitor. Given the inherent conflict of interest (a concept that does not exist in India) the government institutes policies in their own favor because their entire outlook is still aimed at monopolizing. Furthermore major labor unions themselves have become political entities which means they now serve the interests of corrupt governmental representatives instead of the labor force. This in turn empowers populist public figures who obstruct any potential industrial ventures by invoking land disputes and/or archaic labor laws.

    Looking at the model in the state of Gujarat however one can easily see that business friendly policies can attract a lot of industries. Albeit not everything is hunky dory here either. But the point remains that unless there's government initiative there can be no real industrialization, even if it is crony capitalism.

    At the end of the day India is not China. The central government cannot muscle its way through everything and Foxconn could never get away with what they do in China. Unless the Indian establishment is able to clearly define its role as the facilitator and responsible regulator, and unless there are strong moves to initiate land and labor reforms, India will never truly industrialize.
     
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  17. Singh

    Singh Phat Cat Administrator

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    In India your success is measured by how much harassment you can take and how many principles/laws you are willing to break.
     
  18. tramp

    tramp Senior Member Senior Member

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    Re: Don't see things progressing in India, no plan to invest there: La

    Remember what Rata Tata once said when asked why Tata was not interested in launching an airline after the aviation sector was opened. His response was he did pursue, but the number of people whose palms were to be greased deterred him. The situation has not changed one bit ---- politicians and bureaucrats!!
     
  19. tramp

    tramp Senior Member Senior Member

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    Re: Don't see things progressing in India, no plan to invest there: La

    India is not my prirority for investments, says an irked Lakshmi Mittal


    Read more at: India is not my prirority for investments, says an irked Lakshmi Mittal : Mail Today Stories, News - India Today

    Steel magnate L. N. Mittal, who is unhappy over the delay in getting clearances for his projects, said India was not his top priority for investment.

    Speaking at the 48th annual convocation of Indian Institute of Management Ahemadabad (IIM- A), Mittal said: " I do not want to give you any timeline about my Indian projects… experienced so much of delay... India is not in my top priority for investment, it is top priority as a country but not a top priority for investment." ArcelorMittal, the steel giant belonging to Mittal, had inked an MoU with the Orissa government in December 2006 to set up a 12 mtpa steel plant in Keonjhar district at an investment of ` 40,000 crore, but it has been facing delay since. Another project of the company in Jharkhand is also facing delay.

    Sharing his global outlook on steel, Mittal said that despite the European steel demand being down by 30 per cent, emerging nations such as India and China as well as the countries in Africa will continue to do well.

    "Inspite of the fact that European steel demand is down by 30 per cent... there are many countries around the world like the American region, emerging markets like India, China, Africa, all these countries will continue to grow," he said. He further added that globally the demand for steel would continue to grow at 3 to 3.5 per cent. Earlier, Mittal also defended his group's proposal to close two blast furnaces at the Florange plant in France.


    Read more at: India is not my prirority for investments, says an irked Lakshmi Mittal : Mail Today Stories, News - India Today

    India is not my prirority for investments, says an irked Lakshmi Mittal : Mail Today Stories, News - India Today
     
  20. AVERAGE INDIAN

    AVERAGE INDIAN EXORCIST Senior Member

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    Re: Don't see things progressing in India, no plan to invest there: La

    India is indeed developing New technology campuses are sprouting throughout India's urban centers along with upscale office and apartment complexes

    But Land acquisition is a major issue in India because of opposition from landowners and environmental regulations. South Korean steel maker Posco had been battling for more than five years to secure land for its proposed $12 billion steel plant in the eastern state of Orissa. The state finally began acquiring the land for the project, the Wall Street Journal reported May 19.A recently deserted car factory in Singur in the communist-run state of West Bengal offers mute testimony of heavy industry’s ongoing struggle to acquire land in India.

    The factory was to have been the home of Tata Motors’ Nano, billed as the world’s cheapest car, and was to have transformed the semi-rural suburb around it into a bustling township. Tata announced its plans to much fanfare in 2008. But more than two years of protests by farmers and villagers over land acquisition forced India’s third-largest automaker to move its operations to a new plant in the western state of Gujarat and abandon its $350 million factory in Singur. Now Tata Steel, the world’s eighth-largest steelmaker, is fighting a similar, if embarrassing, battle to construct a plant at Kalinganagar in the eastern state of Orissa.

    As India tries to woo foreign investors and burnish its standing as Asia’s third-largest economy, its industrial endeavors face resistance, mostly from villagers reluctant to part with land their families have tilled for decades. Current delays in land acquisition for industrial projects threaten to sink investments worth $100 billion to India in the near term, according to a recent study by the Associated Chambers of Commerce and Industry of India, one of the country’s largest business groups.

    The ability to secure raw materials is another growth barrier cited by steel producers in India. India is rich in iron-ore, but most of the nation's supply is exported to other countries around the world. we need government policies that encourage domestic consumption of iron-ore supplies.
     
  21. tramp

    tramp Senior Member Senior Member

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    Re: Don't see things progressing in India, no plan to invest there: La

    Thanks to our baboos with insatiable lust for pelf and the greed for power of the politicians -- whose potbelly is smaller only to their mountainous egos.
     

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