Don’t judge investment climate via this isolated incident: Govt

The Government reaction came as a response to Japanese Ambassador Y Enoki’s remark that unrest at the Honda unit could have an adverse impact on the inflow of foreign direct investment into India.

‘‘An isolated incident involving a labour dispute should not become a benchmark for judging investment climate in India,’’ said the spokesperson for the Ministry of External Affairs, adding that the country’s ‘‘democratic institutions and legal systems provide an effective mechanism to deal with such incidents in a transparent manner. The legal interest of foreign investors will be fully safeguarded’’.

Earlier, Ambassador Enoki, speaking to reporters on the sidelines of a CII conference, said: ‘‘This (the Gurgaon incident) is a disadvantage for India’s image as an FDI destination and also a negative image on Japanese management.’’ Asked whether the Japanese embassy would intervene in the matter, Enoki said this was a matter for the HMSI management to resolve and the embassy would not like to comment for the moment.

Responding to another query on whether the issue was being politicised, he said: ‘‘Such kind of interference should not be made by political parties. India is a society where protection of weak is largely respected.’’