'Cola ban will not impact FDI inflow into India'

New Delhi, Aug 15: An overhelming majority of 89 per cent Indian CEOs and Managing Directors believes that partial ban on Cola sales in certain states on health-related fears would not impact FDI inflows into the country, a survey report today said.

According to an Assocham Business Barometer (ABB) survey, about 76 per cent of the CEOs did not agree to the comments of the US Under Secretary for International Trade Franklin Lavin that ''this kind of action is a setback for the Indian economy''.

The respondents said the Indian reform process has come a long way since 1991 and is much deep-rooted to be affected by occasional issues which become, at times contentious.

In any case, India is not the only country to have witnessed a public outcry on the issue of food safety and concerns arising out of the toxic levels of pesticides in the food products.

''Such kind of issues do erupt all through the world and to say that they would be a setback to the economic reforms would be an exaggeration,'' Assocham President Anil K Agarwal said.

However, almost 91 per cent of the ABB respondents from different sectors felt that it is high time, the safety standards were finalised by the government -- taking into account the views of the stakeholders, be it the cola companies, industry, state governments and the NGOs.

They said composite standards in the food chain were important not only for the Colas but for other products as well.

As for the Cola products, the Indian market has assumed a critical mass and the economy is large enough to set its own standards.

The country does not have to necessarily look at others. ''Why cannot we have our own standards and lead the world in food safety,'' the President said.

He, however, welcomed the statement from the Cola majors that they are willing to accept safety standards for the finished products.

UNI