Reduce restrictions on ownership: Hecklinger

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: India is increasingly seen as not only an attractive host for investment, but also a source of outward investment. OECD deputy secretary general Richard Hecklinger expressed the view in an interview with Huma Siddiqui. Excerpts:

What do you think about partnership initiatives with India?
India is becoming a promising investment destination for most countries. The present government seems to be serious about inviting investments from domestic as well as foreign investors. India has come to be seen as a source of outward investment.

With investment contributing over 20% of the gross domestic product, India is commonly being cited as the center for software development and other knowledge-based industries. From the presentations made at the three-day OECD conference, we have got a clear message that the government is keen on investment, and on encouraging investors to take certain steps.

Richard Hecklinger

The inflation rate is low and foreign exchange reserves have increased. The macro-economic fundamentals are strong and that certainly makes it more interesting.

Which are the areas where the government needs to work more?
The government should think about reducing restrictions on ownership, which still exist in certain sectors. Overall, foreign investment remains far below the percentage of GDP. India, with a per capita GDP of $550, has a long way to go when compared to OECD countries’ $25,000 as of 2003. Though growth is strong, expanding the Indian economy will require investment in infrastructure. Also, bottlenecks need to be eliminated.