Speeches & Articles

Remarks of
CONSUL GENERAL BETH A. PAYNE
at the
Interactive session with the CII
September 26, 2008

September 26, 2008

Mr. Sandipan Chakravortty
My friends and Colleagues in CII
Ladies and Gentlemen,
“Nomaashkar”

Thank you for inviting me to speak to you today and I am delighted to be here with you.  I am excited to be in Kolkata at a time when ties between the United States and India have never been stronger.  The Confederation of Indian Industry has helped strengthen the economic partnership between the United States and India and I would like to thank you for being such a good friend of the United States and a strong supporter for Indian industry.

In the two months that I have been in Kolkata, I have seen a strong desire for economic growth and industrialization.  I have also seen the equally strong desire to ensure that economic growth is inclusive and that it is accomplished in a way that accounts for environmental concerns, preserves the local culture, and retains the special heart and soul that makes Kolkata and West Bengal unique.

During the past 15 years, India has emerged as a strong and confident player in the global economy, an important trading partner, a major consumer of global commodities, goods and services, and an attractive destination for global investment capital. 

India's deeper engagement with the global economy has helped propel its growth to more than nine percent annually over the past five years, helping to raise people out of poverty and expand the country’s middle class.  India's growing and vibrant private sector is the essential engine for this economic growth and expanded employment. 

West Bengal is East India’s main economic engine, which is why robust private sector investment in West Bengal, traditionally the home of India’s manufacturing industry, is so important to ensure continued economic growth in this region.

American investors know that West Bengal has a lot to offer.  It has a good network of railways, road and port facilities, and its power situation is better than most of the rest of India.  West Bengal’s workforce is one of the best educated in India and has one of the lowest attrition rates.  And, the cost of living in Kolkata is lower than other major Indian cities.  The government of West Bengal has also implemented policies that encourage private sector initiatives and economic growth.

At the center of all these benefits is the beautiful and cosmopolitan city of Kolkata.  I find it easy and enjoyable to live in Kolkata.  Even with its large population and congestion, I feel like I’m in a small town – some of that feeling comes from the warm welcome I’ve received!  I am also impressed by the many public parks in Kolkata, by the efficient public transportation system, and by the creative, innovative art scene.

All of these factors – an educated and reliable work force, government leadership that supports a pro-business environment, and a vibrant cosmopolitan city - are what American investors are looking for when deciding where to open new businesses.  However, American investors are also looking for stability, transparency, rule of law and, most important, a respect for agreements and contracts.

Unfortunately, conflicts like we are seeing in Singur cause American investors to question whether West Bengal can offer these essential elements.  They worry that signed agreements may be discarded for political reasons.  They worry that their workforce will not feel secure if there is a disagreement about contracts that are signed with government agencies.

American investors are watching how conflicts such as the one in Singur are resolved – and noting whether they are resolved quickly, nonviolently and with an understanding that signed agreements must be upheld.  They want to know that their investment project is free from political battles and that other entities will not interfere with their business model.

The U.S. India Business Council (USIBC) was very excited to come to Kolkata because of all the positive aspects they were seeing in this region.  USIBC’s trade mission, headed by Paul Conway of Cargill and Ian Thomas of Boeing, two companies with a long relationship with India and West Bengal, would have introduced many other American companies to West Bengal for the first time.

Unfortunately, these companies asked “If Ratan Tata cannot succeed in West Bengal, then how can an American investor hope to succeed there?” and decided to bypass West Bengal for the time being.  It is regrettable that West Bengal lost such an important opportunity to showcase the best it has to offer.

Singur highlights the challenges that often come with economic growth, globalization and industrialization.  It also highlights the importance of government leadership that ensures that its public understands the importance and benefits of business investment that leads to significant quality job creation, while ensuring that those who may be displaced or otherwise adversely affected by this investment are adequately compensated and ensures a decent standard of living.

Rather than shrink from the downsides of industrialization and globalization, successful nations such as the United States and India turn challenges into opportunities, rewarding the entrepreneurship and innovation that brings about new and inventive solutions that will benefit all of society.

In this land of Tagore, the center of India’s culture and creativity, I believe that West Bengal’s political and business communities can effectively confront these challenges and develop the best solutions for all of its citizens.   This is why I am confident that West Bengal’s private sector, given the freedom to act, and not limited by political considerations, can help find the solutions to the challenges that come with industrialization and globalization.

I have already seen some of this resourcefulness and innovation when I visited IT companies in Salt Lake and toured the new city of Rajarhat.  I have seen this originality and imagination among the students and young entrepreneurs I have met over the past two months.  And, I have seen this vision in the offices of Advantage West Bengal and in their creative approach to IT promotion in the state.

I therefore look forward to the day I welcome many U.S. trade missions to Kolkata.

Thank you and “Shobai bhaa-low tha-koon”