Corruption issue not to affect FDI in India: Sir Martin Sorrell, CEO, WPP Group

NEW DELHI: The ongoing anti-corruption stir in India could impact the structure of the government in long-term, yet it would not deter MNCs from investing here as long as the country's economy continues to grow fast, according to WPP Plc Chief Executive Martin Sorrell.

"The general view is that what is happening in relation with the corruption issue (in India) is good in the medium term, in the short-term there might be significant disruptions," Sorrell said at Express Adda responding to a query on his views on corruption issues that have plagued India.

Express Adda is a platform where prominent people from all walks of life come together to discuss and debate in an informal manner issues that impact the country.

Activist Anna Hazare has been leading a mass agitation to bring in stricter laws to check corruption in India.

"There is a plethora of views on the impact of the structure of the government, whether there will be an impact or not in the long-term... I would say the general view is that this is possible," he added.

Sorrell, the chief of one of the world's largest media and communication groups, however, stressed that corruption is not specific to India alone.

"Corruption exists in other countries, it exists in China, Russia, Brazil, it even exists in the UK and the US, France, Spain, even Italy. So people in glass houses should not throw stones," he said.

Expressing confidence that as long as India's economy outgrows others, foreign investments would continue to flow into the country despite issues like corruption.

"I think the fundamental thing is as long as India continues to grow at a greater pace than compared to other economies, multinational companies will continue to invest significantly in the country," he said.

Citing examples of other countries, Sorrell said, "Does corruption stop FDI? No. It does not stop it in Russia, it does not stop it in China... it does not stop it in Brazil, if the growth rate is fast. I would not choose between Russia or Brazil either."
He, however, pointed out that India needed to address many issues that it is up against.

"India faces some issues... corruption is one issue, government regulations and red-tapism, bureaucracy is another issue... infrastructure is another issue," he said.