IFC bullish on India

The International Finance Corporation (IFC) is willing to increase its portfolio in the country from $650 million (Rs 3,200 crore) to $1 billion (Rs 4,800 crore) provided it can find suitable projects to invest in. This was stated by IFC vice-president (operations) and head of new investments worldwide Assaad Jabre, who was here to deliver a lecture at the CII invitation. Jabre added that IFC had a high capacity to invest in the country, but the current regulatory environment was not allowing enough projects to come up, especially in the area of infrastructure. While the $1 billion exposure in the country is a definite target, there is as yet no time frame for the same, he said.

“The important thing is we need to have good quality assets to show in our books for the country. This will then show other investors that India is a good destination, and could have a multiplier effect on investments in the country. This process can take one year, or even five years, but will take happen for sure,” said Jabre.

He referred to World Bank statistics showing it takes an average 90 days and 10 permits to start a new business in India, compared to two days and two procedures in Canada. Surveys show 90 per cent of Indian businessmen have made irregular payments to government officials, going on to show over-regulations always mean higher corruption. The World Economic Forum has ranked India 74 out of 75 nations surveyed in its Global Competitiveness Report 2001.