Speeches & Articles

Remarks by
CONSUL GENERAL BETH A. PAYNE
CII in Patna, Bihar
December 19, 2008

December 19, 2008

Mr. Satyajit Singh, Chairman of CII, Bihar State Council
Esteemed CII members
Ladies and Gentlemen
 
Thank you very much for inviting me to speak to you.  I am delighted to be with you in Patna 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 our two countries and I would like to thank you for being such a good friend of the United States and a strong supporter for Indian industry.
 
Before we begin today’s interactions, I would like to express my deepest anguish and shock at the terrible tragedy that Mumbai, the rest of India and the world witnessed a few weeks ago.  My prayers and thoughts are with those who lost their loved ones.  Such moments renew our resolve to support each other so that our children can live in a more civilized and peaceful world.
 
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.  Even in the middle of a global financial crisis, the Indian economy is expected to grow at around five percent, which is significant by any yardstick.
 
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 the past four 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 Patna and Bihar unique.
 
Patna is a cradle of human civilization, with a glorious legacy of some of the finest universities and centers of learning that once flourished here.  I appreciate the challenges the private sector and the Bihar government face in managing the environmental and social concerns that come from a rich agricultural resource base of your state.  And, despite its immense agricultural and human wealth, Bihar 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. I am happy to learn that CII’s partnership with Pratham is taking vocational education to 1,000 disadvantaged children in Samastipur.
 
CSR initiatives make sound business sense as they expand the market in the long run.  An expanded market means more investment opportunities. There is a growing interest among U.S. companies in investments in Eastern India.  These potential investors will be interested in knowing more about Bihar’s investment climate, which is one of the main reasons why I am here today.  I'm here to answer the following questions that American investors are posing: 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?

I'm hoping that you can help me and potential American investors answer these questions.  It is always a pleasure meeting with CII members and I am happy to answer any questions and would appreciate your comments on the investment climate and industrial development in Bihar.

Thank you.