In our previous article reflecting on PM Modi’s 7-days visit to US, we have explained how PM Modi offered many things to the world, Imran only whined about what the world should give him. In all his engagements PM Modi always referred to the strength of 130 crore people of India. It is apparent that even with his engagements with the global business community he has leveraged the demography of India to showcase an evident market opportunity in India. PM Modi toped this factor with the fact that the major changes he brought to the population with his government’s measures in sanitation, anti-corruption drive, ease of doing business etc.
Let’s see how PM Modi has showcased India as a preferable investment destination in his engagements with global business community.
Meetings of PM Modi with various business leaders in the past week in the USA and his speech at United Nations General Assembly underline his resolve to focus on welfare of millions of Indians.
After reaching Houston, he discussed methods to harness opportunities in the Indian energy sector with leading global energy sector CEOs. The 17 CEOs were of global energy companies which have net worth of over $1 trillion and presence in 150 countries. A MoU was signed between energy companies Tellurian and Petronet LNG.
Notably, in the third edition of Bloomberg Global Business Forum in New York, he presented India as a preferable destination for global investors. The meeting was attended by over 40 CEOs of the top global companies. He discussed some of the reasons for why investors should come to India.
Favourable Economic Ecosystem
With growing purchasing power there is increasing demand and market with scale. Aspirational middle class with global outlook is appreciative of latest trends and features. Indian youth is one of the largest users of the app economy. Start-ups are acing in diverse economic activities in the huge Indian market. Human resources are being skilled keeping global demand at centre stage; cooperation between Japan and India is a replicable model. Government of India plans to invest nearly $1.3 trillions for development of modern infrastructure. Moreover, India is rapidly modernizing cities equipping them with latest technology and citizen friendly infrastructure. The defence sector is open like never before. Building of millions of homes for poors and middle class, perhaps one of the largest housing efforts in the world, provides ample opportunities in realty sector. Thus, the roadmap for qualitative and quantitative improvement is being implemented in India.
Value addition through food processing, organic farming can cater to big global market of holistic care. Launching of world’s largest health insurance scheme has created possibility of developing nearly 2,000 modern hospitals with assured income. Laying of optical fibre in over 6,00,000 villages along with Digital India movement is providing investment opportunities.
Debottlenecking, deregulation, delicensing has been taken up on mission mode. GST as indirect tax regime has become part of the business culture in India. IPR and trade marks regime has been strengthened. Insolvency and Bankruptcy Code has been implemented. More than 50 laws scrapped which created hurdles in the process of development. Apart from tax reforms, world’s largest financial inclusion has happened in very less time in India bringing nearly 370 million Indian in banking net. With unique Id, mobile phone and bank account to citizens faster and targeted service delivery is possible. It has increased transparency many folds. Efforts are being made to link laws, rules, systems, governance, efficiency with global benchmarks.
4 Ds - Democracy, Demography, Demand and Decisiveness
Democracy, Demography, Demand and Decisiveness are four important features of the Indian growth story today.
Political stability, policy predictability and independent judiciary ensure investment safety and guarantee returns. Use of English language for judicial and legal functions reduce the problems arising out of different interpretations by investors. With large number of Youth with Engineering education, robust R&B facilities and encouragement to innovation through Atal Tinkering Labs, incubation centres, India has become third largest country with Unicorns after USA and China. India’s growing middle class and population of 1.3 billion makes India an attractive destination for businesses across the world. Despite being a diverse and federal democracy, in last five years, development of seamless, inclusive and transparent systems have been emphasised.
Growing Trust of Investors
Given to various measures, India is regularly performing well in every global ranking. India significantly improved in Logistics Performance Index, Global Competitiveness Index, Global Innovation Index and Ease of Doing Business. Nation Brand Tracker 2018 of Bloomberg has ranked India at first place in Asia for investments. In past 5 years, there was FDI of $286 bn, which is half of the total FDI flow in past 20 years! Nearly 90% FDI is through automatic route and 40% is greenfield investments. It is a sign of growing trust of investors in India.
Dealing with Climate Change
India has set target to achieve 450GW renewable energy. PM mentioned about launch of Jal Jeevan Mission and ban of single use plastic highlighting how India is moving ahead in many fields simultaneously to deal with Climate Change.
Disasters induced by Climate Change are growing. As per a global survey, 60-70% established infra gets destroyed in a disaster. For disaster resilient infrastructure there is need to bring new materials, technologies. It is poised to become a big market and big economic activity in near future. PM Modi’s announcement of establishing a global Coalition for Disaster Resilient Infrastructure (CDRI) at the UN Climate Action Summit is an effort to take holistic view in this regard. PM invited investors to bring technologies for coal gasification to provide clean energy apart from environment friendly methods of coal mining.
PM’s speech at UN General Assembly also focussed on vision for development and underlying vision of ‘Jan-Bhagidari se Jan-Kalyan, aur Jan-Kalyan se Jagat-Kalyan’ i.e. public welfare through public participation ultimately leading to welfare of entire world
Trade is a certain way of uniting people in the bonds of peace and development through negotiations, mutual cooperation, convergence of interests and reconciliation of perspectives. So does the diplomacy in foreign relations. Indeed, in sharp contrast to troll PM of Pakistan, PM Modi has added Diplomacy as a fifth dimension to 4 Ds for why investors should come to India.
As one can see, PM Modi seems to have perfectly aligned the achievement of flagship programmes back home to convey the business leaders an unmissable story of brand India which they have an opportunity to join with their investments.