Ahmedabad, 13th January 2015 The season of investment summits is on with Vibrant Gujarat Global Summit (VGGS) coming quick on the heels of the just concluded Bengal Global Business Summit (BGBS) last week. If Gujarat got a big haul with companies like Reliance, Adani Enterprises, Sun Edison and the Aditya Birla group announcing investments plans, West Bengal, too received investment proposals spread across fields such as education, mining, infrastructure, tourism.
The investor trust that the two states generate are innately different due to the cultural, political and historical hues that the state brings as its legacy. However, when investments not only bring financial success, but are also the gateway to political success, the imperative behind making such summits a success become overwhelming.
N. Chandramouli, CEO, TRA (formerly Trust Research Advisory), elaborated the investor-trust angle and said, “Even states which are new to investor summits can help change the color of investor trust rapidly. If a government attempts to create investor confidence, lessens bureaucratic hurdles and act like facilitators it helps to get investors to listen. However, investors are always cautious and invariably wait to see State governments walk-the-talk on their promises, before they sign up the money.”
“Investor Trust is comprised of three foundations and all three aspects rest with the State Governments. Firstly, ‘Building Capacity to Trust’ in the investors by creating a right political and bureaucratic environment, appropriately communicated to investors. The second foundation of Investor Trust is when the State shows the ‘Right Intent’, becoming completely investor friendly and going the extra mile to please the investor. The third foundation of Investor Trust is the toughest and often the touch-stone that investors use before signing the cheques – ‘Showcasing Competence’ in handling the investments. If a State government has to attract investment, it must repeat these three mantras over and over again”, Chandramouli added.