CALCUTTA, Dec 25: British business ambassador lord Swraj Paul said foreign investment in India would be of no help unless the workforce becomes productive and works with integrity.

"India is clamouring for foreign investments, but no self respecting country will seek such investments as panacea for its economic ills. The country deserves better, but it has been otherwise as the successive governments have not been able to deliver the goods," Paul said.

Paul, who is on a visit to the city, said it is possible to raise the standard of living using available domestic resources, for which the Indian industry has to function efficiently and reduce wastage.

He alleged that economic liberalisation has not been implemented properly in India and was the reason behind the current economic recession. In fact, since the taking up of the liberalisation programme in 1991 red tapism had increased which has become a "big hurdle" for overseas investors.

Paul is chairman of the UK-based Caparo group having an annual turnover of $1 billion. He also called for downsizing of the government, including the ministries and bureaucracy, and said unless this was done, India would continue to be a developing country.

He said politicians should not be blamed alone for economic failures and businessmen, bureaucrats should work closely with them to address the problems.

About coalition politics, he said this had come to stay in India and was better than single party majority for their adherence to honesty.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.