Richard Chapman, chairman, Norwegian Business Association- India talks to BW Businessworld’s Brij Pahwa about the latest business climate survey done by NBAI and the trade and investment climate in India.
Do you see India as a friendly partner in terms of doing business?
We do see India as a friendly partner in terms of doing business but there are challenges as well. Policies with respect to ease of business are helpful though the implementation is relatively slow. In the recent business climate survey that we have done, we think that bureaucracy and corruption are the two major issues. I think the long-term view is important and we would like to see the eradication of these two issues. It would be an ideal situation to see India’s rank amongst the top 50 in ease of doing business in future. It would be a lot more encouraging for Norwegian companies hence.
Will demonetisation have an impact on Norwegian companies already present in India since the economic pie is expected to shrink?
If we look at Norwegian companies here in India, we have got both B2B and B2C companies. While B2B companies will be less affected, the impact will be more on B2C companies. We have already seen a dip in sales this month.
Although, we do like the move as we think this will help curb corruption and help the economy in the longer run. The key however is how soon the government normalises the situation.
About 90 Norwegian companies are present in India. Are there more companies planning to invest in India?
Yes. We do see more Norwegian companies coming in. Two years ago, we were about 60 companies and now there are about 90 companies present in India. There have been some significant investments from companies like Uninor and Telenor in the past. We have seen government’s sovereign wealth fund coming to India to the tune of about $9 billion. So, there is big investment from there, much more into equities and bonds.
Can you share the major highlights of the Norwegian business climate survey 2016?
The common understanding is that the business climate is favourable in India today though our survey paints a different story. Only one third of Norwegian companies surveyed made more money this year than last year. On another note though, more than 75 per cent of companies think that next three years look more favourable. I am very positive about the future and I personally look forward to consistency which will breed stronger interest in investments.
What are your views on the future of Indo-Norway trade relations?
There is a protectionist attitude being reflected by both the countries hence my personal view is (and this is coming from a private stand point) that we would not see any changes in trade relations and there is not going to be a big difference to the status quo in the near future.
