Intl lobbies spreading stories; Obama misinformed: Moily

Responding to Obama`s concerns over "deteriorating" investment climate in India, govt said certain international lobbies were spreading such stories.

Bangalore/New Delhi: Responding to US President Barack Obama raising concerns over "deteriorating" investment climate in India, Government today said certain "international lobbies" were spreading such stories and he was not properly informed about the country`s strong economic fundamentals.

"Certain international lobbies like Vodafone are spreading this kind of a story and Obama was not properly informed about the things that are happening, particularly when India`s economic fundamentals are strong," he told reporters in Bangalore when asked about Obama`s remarks in an interview to PTI.

Opposition parties lashed out at Obama for his remarks that India prohibits foreign investment in too many sectors, with BJP saying the country cannot open its markets just because he wants it.

"If Obama wants FDI in retail and India does not want, then it won`t come just because he is demanding it," was the terse reaction of BJP leader Yashwant Sinha said in Delhi.

Moily said the perception of deteriorating investment climate in India was not based on economic parameters, but on certain impression of few individuals, entrepreneurs and investors.

"That is also being removed. Once that perception is removed, I think in 2-3 months, we are back again with a kickstart to pick up the same speed as we had done in the last decade," he said.
Moily said there was no crisis in India, whereas the US and other countries were facing crisis, "not once but twice in 2008 and 2010".

"Not even a single financial institution has collapsed in this country, whereas many such things have collapsed in US and other countries," he said.

He said in the last one decade, India has registered a vibrant growth rate of 8 to 9.5 per cent, "but perhaps for the economic crisis in the US and Europe, the country would have definitely crossed 10 per cent of the GDP."