India could not reap benefits of FDI before 1991 as it was forbidden: Chavan

Chief Minister says there is still opposition to FDI in retail,but hopes there will be no major problem in attracting investment

Written by Express News Service | Published:October 17, 2012 4:28 am

Chief Minister says there is still opposition to FDI in retail,but hopes there will be no major problem in attracting investment

Cheif Minister Prithviraj Chavan on Tuesday said India couldn’t reap the benefits of foreign investment for a long time as it was not allowed before 1991 as a matter of policy.

Speaking at the inauguration of Volkswagen training academy here,he said: “Even IBM was forced to move out of India. Before 1991 we did not allow investment. As a matter of policy it was forbidden.” He said the government had even asked IBM to dilute its stakes but finally the company was forced to move out of India.

He said that even today there was opposition to foreign direct investment (FDI) in retail,but hoped there would be no major problem in roping in investment now. The Chief Minister also called on private companies from outside who are investing here to take steps towards and meet people’s aspirations as they also benefit from the growth in company businesses. “When you decide to locate investment,the benefits must flow to the people as land was acquired from them,” he said.

He hailed the initiative of the Volkswagen group in launching the training academy stating that the youth will be better qualified for jobs. The Chief Minister called upon Volkswagen to invest in research and development facility in Pune,emphasising that they will not only have easy access to human capital but will be in a position to design the vehicles at reduced prices as compared to western countries. He said the Maharashtra Industrial Development Corporation (MIDC) has set up fairly decent infrastructure in and around Chakan and the problem of power shortage has been overcome. “Maharashtra is the second largest state and we have a double digit growth rate. Our promising growth rate only shows the kind of market we have,” said Chavan.

Earlier,he inaugurated the Volkswagen training academy,which is the company’s largest training centre in Asia. Dr John Chako,president and managing director,Volkswagen India,said the company has started the regional academies in some cities and the Pune academy has a scope of training over 5,000 participants yearly from all over India for a duration of two to 10 days.

For all the latest Pune News, download Indian Express App

    Live Cricket Scores & Results