It was this week that three articles appeared in three different newspapers which spoke about India’s image as an investment destination to overseas investors. The first article wrote about the blots on India’s image, due to the lack of sanctity of commercial contracts and how easily does the government and the private sector, renege on a duly written/signed contract. It then mentioned the huge delays in enforcing such contracts in India, where the average time taken to get contracts enforced by the courts by resolving commercial disputes is 1445 days in India, as against 120 days in Singapore and 403 days in Indonesia. It rightly said that while in the overall EODB global rankings, our standing has improved considerably, however when it comes to enforcing contracts, our ranking competes with the likes of Zimbabwe and Afghanistan. It referred to the recent blatant cancellation of solar agreements by the Gujarat government, awarded to the likes of ADIA and Temasek merely because the government was getting better tariffs elsewhere. It was an audacious refusal by the government to honour a duly executed contract. It reflects stark system indifference to international investors and poor integrity, even at the institutional level in India. In this episode of the Business Tit-Bits, our Business Editor Mr Akhilesh Bhargava shares his take.
#EODB #Indonesia #ADIA
As an independent media platform, we do not take advertisements from governments and corporate houses. It is you, our readers, who have supported us on our journey to do honest and unbiased journalism. Please contribute, so that we can continue to do the same in future.
