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12/04/2006 |
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Unofficial Translation (Please make due allowance)
HARDEEP SINGH PURI “TOGETHER,
WE HAVE A POTENTIAL SO BIG AS CHINA’S ONE” Ambassador
of India talks about growth, modernisation and market opening. And,
also, he proposes the formation of an economic axle linking India,
Brazil and South Africa By Gustavo Gantois |
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For
the first time in its history, India has a Prime-Minister with the
surname Singh, member of the caste of Sikhs, those ones with beard and
turban that are the backbone of the Indian Army, intellectuality &
science. Not by coincidence, the new Indian Ambassador has just arrived
in the country with the same surname: Hardeep Singh Puri. The
Prime-Minister sees Diplomat Singh as one of his men of confidence.
Leader of one of the most growing economies in the globe, the
Prime-Minister designated the diplomat to consolidate an strategic
alliance between India, Brazil and SA. “Together, we have a
potential so big as China’s one”, says the new Ambassador.
54-yrs-old, fluent in Japanese, Singh Puri already rehearses the first
words in Portuguese. “I am learning it step by step”, says
with simplicity. With a reputation of extraordinary negotiator, he spent
more than 10 years in Geneva, changing positions at the United Nations,
as a mediator in disputes at the World Trade Organisation. In Brasilia
for three months, he already plans a 3-time-increase at the trade flow
between India and Brazil, currently in US$ 2.3 bn. Check the main points
of his interview. DINHEIRO: ARE INDIA AND BRAZIL PARTNERS OR RIVALS? HARDEEP SINGH PURI: I always say we are twin souls. Brazil and
India have common interests and challenges. We are developing countries
that are scratched by the problem of poverty. I would not say that
Brazil does not have anything we have. What we can say is that Brazil
needs to start exploring more the opportunities, especially the
businesses, which are running throughout the world. Investment is an
intriguing thing. When everything is fine, it is by your side. When
things start getting bad, it flies away in the first signal. DINHEIRO:
BUT INDIA HAS BEEN REGISTERING INVESTMENT LEVELS EVEN LOWER THAN
BRAZIL’S ONES. HARDEEP SINGH PURI: Indeed. This is an example that nothing lacks
for Brazil. Last year, we had an US$ 8-bn-amount in FDI. You had US$
12.5 bn. Maybe Brazil needs a little more promotion: to organise big
delegations of businessmen to check the potentialities of the country. I
know you are looking for partners to finance infrastructure
constructions, I also know you need more investments in energy sector.
But the question is: do businessmen know about it? DINHEIRO:
AND WHAT IS INDIA DOING DIFFERENTLY? HARDEEP SINGH PURI: Once more, I remind you my definition of twin
souls. Don’t be shocked, but we have a US$ 250 bn- infrastructure
deficit for the next five years. We need investments in energy sector,
highways, railways, airports and system of public transportation. The
difference is that we want everyone to know about it. Other day I was in
Miami and I saw the new constructions of Miami Int’l Airport. I found
it so impressive that I stopped to see the hoarding of the responsible
technical construction company. They were from Odebrecht. As soon as I
reached the country, I visited Governor (Geraldo) Alckmin in S.
Paulo. We got a deal and we will carry a big delegation of construction
companies to know about our projects. Odebrecht would do a very good job
there. Indeed, their presence would be an honour for me. DINHEIRO:
BUT THE COMPANIES MAY NOT FACE ALL THIS AMOUNT OF INVESTMENTS ALONE.
WHAT IS THE SOLUTION? HARDEEP SINGH PURI: Resources of such amount cannot be financed by
the companies alone. Nor by the public sector. We are trying to find
partnerships in order to spark projects like PPPs Brazil idealised. It
is all set in India. All judicial background is legalised and some
partners are already looking for us. DINHEIRO:
OTHER FIELD THAT IS ATTRACTING THE WORLD’S ATTENTION TO INDIA IS THE
PREPARATION OF HUMAN RESOURCES. WHAT IS BEING DONE? HARDEEP SINGH PURI: In this field, there is no innovation or magic
or innovation. What people have to understand is that there is no
skilled workmanship without education. And we treat such subject as a
priority of State. I would not be exaggerating if I tell you that 30% of
our budget is for this field. And more: our emphasis is in basic
education. Basic education is the one that determines what each person
may reach in mature life. It does not mean we neglect higher studies. We
really made a revolution in this area. We have five great universities
dealing exclusively with technology. You should see they are
Universities and not Faculties. This has been reverting the exodus of
great scientists to the US. Now, when they don’t stay in India, they
go and come back. They know our companies are absorbing such
raw-material for the sustainability of a big economy. We are proud of
what we did. But there are lots to be done. DINHEIRO:
HOW SUCH INVESTMENT IS REFLECTED IN THE INDIAN GDP? HARDEEP SINGH PURI: Nowadays, the sector of services has a
54%-slice of our GDP. However, the big problem we still see on it is
that almost half of it comes from Bank of India’s actions. That’s
why we are working to diversify this relationship. For example, the
agricultural/ livestock sector has only a 20%-slice of the GDP.
Currently, it is growing 2% p.y. – something unacceptable in a country
where 60% of its population is directly dependable of it. So, we are
working in agreements to develop the quality of our system, including
agreements with Brazil. Embrapa is showing more and more interest to
develop specific products for our reality. DINHEIRO:
BUT INDIA FACES ACCUSATIONS OF HAVING A SO-CLOSED MARKET. HARDEEP SINGH PURI: And who are the ones who do not want to protect
their markets nowadays? But our market is gradually opening. If we do a
rough calculus, we opened our economy with a 20-year-delay if compared
to China, for example. And they are not that open market nowadays. We
are working in the reduction of customs rates to reach the same levels
of other Asian South-eastern countries. Besides, we carried on big
structural reforms. Our economy is opened to FDI in the same proportion
of the domestic investor. It does not happen in some sectors in Brazil,
for example. Itau is due to opening its first branch in New Delhi.
Step-by-step, we will reach a level that pleases foreign investors and
doesn’t damage our businessmen. DINHEIRO:
AT THE WORLD TRADE ORGANISATION, INDIA IS ALWAYS ALIGNED WITH BRAZIL.
HOWEVER, IN THESE LAST MONTHS, THERE ARE INCREASING RUMOURS THAT THE
INDIANS ARE WORKING AGAINST G/ 20 INTERESTS. IS IT TRUE?
DINHEIRO:
IS IT IN THIS SENSE THAT YOU HAVE INSISTED IN THE CREATION OF
INDIA-BRAZIL-SOUTH AFRICA AXLE? HARDEEP SINGH PURI: This is an important subject. To start, I think
it is an absurd thing not to have a direct connection among the three
countries. It is unacceptable to go from New Delhi to Sao Paulo via
Frankfurt, and not via Johannesburg, for example. I am talking about 13
million Indians that travel overseas and that would love to visit
Brazil. Now, in the economic point of view, I think we could treat one
another with more attention. I am not telling we should break all
negotiations with the US or the EU. But we should establish a certain
priority to countries more tuned to our interests. This axle I call IBSA,
has a potential as big as China’s in the new global economic reality.
Even more, if we analyse it deeply. We want and need investments, we
have workmanship ready to overcome structural hurdles and a giant
consuming mass. The world is looking at us. They are just waiting our
initiative.
DINHEIRO:
BUT BEFORE CREATING A NEW BLOC, A BILATERAL APPROACHING WOULDN’T COME
FIRST? HARDEEP SINGH PURI: Indeed. This is my mission in Brazil.
Yesteryear, our trade flow reached US$ 2.3 bn. And this figure doubled
in comparison with the previous year. It doesn’t exist! The
organisations of both countries have to strengthen ties. When we reach
the US$ 5 bn-level, it will not be an appropriate amount. The Brazilian
agriculture is three times bigger than ours. As how I said, we have to
grow in this area. We have been growing at an annual rate of 8% and
Brazil is growing at a rate of 3%. You have the capacity to increase it
three times! And we want to join this game. DINHEIRO:
ANY SPECIFIC INTEREST? HARDEEP SINGH PURI: Recently I spoke with Eduardo Pereira de
Carvalho (Head of the Sao Paulo Union of Sugarcane Agroindustries)
and we expressed our interest in Brazil’s ethanol programme.
Currently, only 9 Indian states add alcohol to the gasoline. We do not
do more because the sugar consumption is so high due to the size of our
population. We want to invest heavily in this sector. If we do not have
how to invest in sugarcane plantations, we can do it with importations
of Brazilian ethanol. Other big Indian interest is in the aeronautics
sector. We closed a deal with Embraer to buy 5 Legacy with a right to
purchase other 15 in post-selling system. But the reality we need 100
aircrafts a year! We are also in talks with Petrobras to double the
efforts in the field of petrol & gas. As you can see, the interests
are not few. DINHEIRO:
RECENTLY IN AN ARTICLE, PRIME-MINISTER MANMOHAN SINGH SAID THAT POVERTY
IN INDIA SHOULD FINISH WITHIN 10 YEARS. IS IT A PROMISE OR THERE ARE
EFFECTIVE MEANS FOR SUCH ACHIEVEMENT? HARDEEP SINGH PURI: It is not like this. As in Brazil, we have
challenges in this field. It is not fair to compare the GDPs of both
countries, as your per capita income is almost 5 times greater than
ours. I prefer being in a situation of saying that the per capita income
is greater than GDP. That’s why we are working for a better income
distribution. We have more than 260 million Indians living behind the
line of poverty. Fortunately, population is increasing only 1.5% per
year. Adding the growth of our economy with an increase at the social
assistance net, we want the per capita income to increase 6.5% this
year. This will not make us a wealthy country within 10 or 15 years. But
it will surely put us in the first team of countries in the end of such
period. ISTOE DINHEIRO Fortnightly Magazine
Edition # 447, 12.4.2006 Pages 22-24 |
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