Two high-profile Indian businessmen who work out of their headquarters in London have said this week that they will continue to spend on new projects in the home country.
Their separate statements come at a time when there are two concerns about the investment climate in India. First, will rising interest rates and the slowdown in the economy force firms to hold back new investments? Second, will the stalemate at Singur send wrong signals to foreign investors?
Steel tycoon Lakshmi Mittal has said that his group will go ahead with its $20 billion investment plan for India. And Anil Agarwal of Vedanta Resources has announced a global investment plan of $9.8 billion, of which around $7.6 billion will go into two projects in India. Agarwal had also announced three months ago that his various companies would invest $20 billion by 2012.
True, there are still many large industrial projects which are stuck in various problems, partly because of land acquisition issues or because of the downturn in the economy. However, what Mittal and Agarwal have said this week shows that there is still enough confidence to bet big in India.