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September 15, 2008

Indian business frets on political climate

Richard Orange, Evening Standard

To the opposition parties and activists who had set up camp outside Tata Motors' factory in Singur, West Bengal, the state government's decision to award more land to farmers resisting the plant was a watershed. 'This is a historical victory,' said Dinesh Trivedi, a senior figure in opposition party Mamata Banerjee. 'Mamata Banerjee will emerge as the leader of the farmers all across India. You cannot have industrialisation on the bloodstains of poor people.'

But for the scores of companies striving to start new industrial projects across India, it made for a terrifying precedent. Banerjee's two-week siege at Singur has endangered India's most iconic industrial project - the Tata Nano, the world's cheapest car.

Full Story...

Posted by boyang at September 15, 2008 10:33 AM