Speeches & Articles

Remarks by
CONSUL GENERAL BETH A. PAYNE
CII in Jamshedpur, Jharkhand
October 15, 2008

October 15, 2008

Chairman of Jharkhand CII, Mr. Partha Sengupta
Esteemed CII members

Thank you very much for inviting me to speak to you.  I am delighted to be here with you and excited to be in Jamshedpur 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 past two and a half months that I have been in India, I have seen a strong desire for economic growth and industrialization in East India.  I have also seen an 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 Jamshedpur and Jharkhand unique.

Jharkhand is famous for its mineral resources and forest wealth.  With more than 40 percent of India’s total mineral deposits, the state has enormous potential.  By building on its mineral-based manufacturing sector, it could emerge as one of the fastest growing economies in India.  Jharkhand is home to one of the world’s biggest steel producers, Tata Steel, and has welcomed major U.S. investors like Cummins and Timken.  Based on their success in the state, I’m not surprised that Jharkhand is attracting huge investments in new projects -- primarily in the iron, steel and power sectors.

I appreciate the challenges the private sector and the Jharkhand government face in managing the environmental and social concerns that come from a rich mineral resource base located under forest cover.  And, despite its immense mineral wealth, Jharkhand remains one of India’s poorest states. The rural-urban divide is sharp when one compares poverty levels, access to physical infrastructure like roads, electricity and basic health care facilities.

As we have seen throughout the world, inclusive growth that raises everyone’s standard of living creates the most stable environment for future investment. It ensures that land acquisition has public support because communities can see for themselves how they will benefit from industrialization. 

Government leadership is also important to explain to the public 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.

However, the task of ensuring inclusive growth cannot rest solely on the government.  Corporate social responsibility projects that augment the government’s efforts to provide access to basic infrastructure, education and healthcare facilities along with employment opportunities are also important to ensuring inclusive growth and popular support for new industries. 

The Tata Group is one of the world’s model corporations in this area.  Tata discovered early on, before CSR was a “popular buzz word,” that caring for your community is simply good business.  I got a glimpse of Tata’s commitment to community development during my visit to the Center for Excellence and right after this meeting, I will be visiting Tata’s Community Development Center to learn more about Tata’s approach.  I encourage CII members and American investors to incorporate social responsibility into their business models not just because it’s the right thing to do, but also because it’s good business.

There is a growing interest among U.S. companies in investments in Eastern India.  These potential investors will be interested in knowing more about Jharkhand’s investment climate.  Is there rule-of-law?  Are contracts and agreements enforced by the courts?  How easy is it to work through the state and local bureaucracy?  And, most important, how are difficult social issues such as land acquisition handled by the various key players?

My goal is to help American investors answer these questions, which is why my trip to Jamshedpur has been so important.  It is giving me a first hand account of how the private sector, the government and civil society are addressing the challenges you face as you expand your economy and increase much need industrialization. 

This evening I will be traveling to Ranchi and I look forward to meeting senior government officials, including Chief Minister Shibu Soren, and Industry minister Sudhir Mahto, to learn even more about the government of Jharkhand’s vision for economic growth in the state.

It is always a pleasure meeting with CII members and I am happy to answer any questions and would appreciate your comments on industrial development in Jharkhand.

Thank you.