Domestic and foreign firms with investible funds looking for opportunities in India for expanding their existing markets and capturing new ones have never had it so good. State governments have pulled out all stops in feverishly competing with one another to get the maximum possible quantum of private investment. It is easy to understand why Chief Ministers are seen beaming with a broad grin in photo-ops with industry magnates whom they have succeeded in roping in: That very fact gives them tremendous political mileage.

Even the fusillade of statements to the media fired at each other by politicians in opposite camps over who brought in most investments or a particular industry or company should be taken as a healthy sign. And why not? Along with investment come jobs, induction of new technologies, development of ancillary industries, and generation of more budgetary resources via taxes and duties for meeting the governments' obligations.

If only an environment of effective, purposeful and corruption-free governance can be guaranteed, the multiplier effect of these beneficial initiatives can catapult the States to a vaulting growth trajectory. Unfortunately, in the case of many States, that is turning out to be a big, bad `if.' This is where the captains ofindustry, whether from within or outside the country, can exercise a powerful leverage over the political bigwigs . They should not enter into a discussion on the specifics regarding the projects considered suitable and feasible, the deployable funds and the time-frame, without going into the various aspects of governance and securing a commitment from the State governments to have the deficiencies remedied as a precondition for investment. Thereby, they can kill two birds with one stone: Saving their investment from mishap and discharging their social responsibility.

B. S. RAGHAVAN

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