MADRAS -- India's image as an attractive destination for global capital may take a beating after a July 25 clash between the police and workers of Honda Motorcycles and Scooters India Ltd. in the city of Gurgaon, located near New Delhi. Scores of workers were severely injured and taken to hospital. Others were taken into custody by the police.
At a subsequent press conference, Japan's ambassador to India, Yasukuni Enoki, pointed out that Japan is India's fourth largest source for foreign direct investment (FDI), and some 70 percent of all Japanese companies in India, including many in the automotive sector, are located in Gurgaon.
Kiyomichi Ito, managing director of Toyota Kirloskar Auto Parts, said, "I'm afraid that such incidents would influence investor perception and may have an indirect effect. Indians should understand that the capital investor has varied choices, and China still remains an attractive investment destination."