Sanctity of contracts is key for Indian renewable projects: FMO CEO

Dutch development finance institution FMO is in India for the long haul. Its chief executive Peter van Mierlo tells Abhijit Lele that the liquidity crunch and slowdown will not last long. While prospects for Indian economy are bright, the sanctity of contracts is important for projects in renewable energy, a sector looking for foreign money.

You are visiting India at a time when the economy is experiencing a slowdown. How do you see the situation as an external observer?

I am very positive and believe that the world has to address two important issues – inequality and climate. If you look from a distance, India’s prospects are very good, with a huge work force combined with highly educated people. I do not see any reason why you are not well set (for growth), being the biggest democracy.