Wednesday, August 4, 2010

FDI may not be hit, it's to be taken as an isolated case

ET catches up with Japanese Ambassador Y Enoki

The labour dispute at Honda Motorcycles & Scooters India has just snowballed into not just a law and order problem in Gurgaon but also a major political controversy nationally. ET's Shubhreet Oberoi and Diya Seth caught up Japanese Ambassador Y Enoki for his views on the issue. Excerpts:

How do you react to the incident at the Honda factory yesterday?
I can't make general comments about yesterday's incident without full information about the company's internal affairs. My initial reaction is that a peaceful, satisfactory solution should be arrived at between the labour unions and the Honda management.

Do you think this incident will affect Japanese investments in India?
Well, it is disadvantageous for India's image as an foreign direct investment destination. However, this needs to be treated as an isolated incident. Labour problems occur everywhere, including the US and Europe, so it is not fair to generalise the impact on foreign direct investment as a whole.

Does the embassy intend to take the matter up with the Indian government?
This is not a matter which requires intervention through diplomatic channels. Local remedial action is the first step that needs to be taken with consultation between the management and the workers. The embassy has no role to play in this.

Do you think the issue has been unnecessarily politicised?
In my opinion too much politicising should be avoided at all costs as no satisfactory solution can come for it.

Where do you see India and Japan's relations heading in the future?
India and Japan are complementary to each other, as both countries have a lot in common. Both Japanese and Indian companies stress highly on creativity, quality management (kaizen). Both cultures are different but can learn a great deal from each other.

While Japanese manufacturing culture focusses on on finger and the eyes, Indian culture focusses on mind and mouth. India is all set to become the infotech and manufacturing destination so there is good reason for optimism.

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