NEW DELHI – India lost two of the biggest foreign investment lately. World’s largest steel maker ArcelorMittal scrapped its $12 billion (50, 000 crore) steel plant in Odisha over inordinate delays, problems in acquiring land and securing iron ore linkages.
The second major blow was given by the major steel manufacturer, Posco deciding to pull out of a $5.3 billion steel mill project in India’s Karnataka state due to delays in securing land and opposition from residents.
Though government is trying hard to cheer the investments and have opened 12 sectors for foreign direct investment. But the macro-economic disputes of sluggish economy, high interest rates, unhealthy FII inflows, higher CAD concerns and many more negative factors have made the country most unattractive industrial destination today, reports Sunitha Natti and Sharan Poovanna of New Indian Express.
5 years prior to the same time, Indian industrial sector was on a complete boom. The country’s most cherished sector, the IT sector, was thriving along with sectors like Pharma industry. Biocon for its insulin drug and Shantha Biotech for making the world’s cheapest hepatitis drug made huge headlines. But as the financial crisis hit the economy, entire world was on complete turmoil, and so was the Indian economy.