Narendra Modi says India should Link West, Look East
PM indicates need for India to be part of global value chain; says govt will be a facilitator, won't create hurdles
New Delhi: Prime Minister Narendra Modi on Thursday called upon both foreign and local companies to invest in India to create a virtuous cycle of economic growth, assuring them that he will provide effective and easy governance.
Inaugurating the ambitious Make in India global campaign flanked by industry captains and foreign dignitaries to make the country a manufacturing hub, Modi said overseas investment will create jobs and spur efforts to eradicate poverty, which will increase the purchasing power of the people and expand the market for investing companies.
The government will provide a growth-oriented environment and act as a facilitator rather than create new hurdles, the Prime Minister said.
While a lot has been talked about following a Look East policy, Modi wants to adopt the dual model of Link West along with Look East policy, he said, indicating the need for making India a part of the global value chain.
Modi said India is uniquely poised with the advantages of democracy, demographic dividend and domestic demand. “Global firms want to come to Asia but they don’t know where to look in Asia,” Modi said.
“I agree that you cannot attract investment just by an invitation,” Modi told an audience that included industrialists such as Reliance Industries Ltd chief Mukesh Ambani and Tata Sons Ltd chairman Cyrus Mistry. “The most essential factor is trust and a sense of security. We assure that we will not let your investment go down the drain.”
The government has identified 25 sectors in which India has the potential of becoming a world leader. Modi released separate brochures for these sectors that include automobiles, information technology, pharma, ports, aviation, tourism and hospitality, wellness and railways.
Modi portrayed India as offering democratic values, a demographic dividend of a growing and youthful population and strong demand. “If there is any country in the world where all these three things are present, it is India.”
Hailing India’s talent pool, Modi said nobody should have any doubts about Indian talent after the success of India’s mission to Mars.
“Our aspirations on the global manufacturing arena will be fulfilled if we address certain challenges on priority,” Mistry said while addressing the gathering. “These factors will include the build-up of critical infrastructure across the country supported by stable policies, transparent and competitive tax and duty structure, efficient and time-bound administration through the use of e-governance, cost effective and reliable energy coupled with logistics, critical for the competitiveness of industry,” he added.
Sudhir Rao, managing director and chairman, Skoda Auto India Pvt. Ltd, said the campaign will bring manufacturing to the fore though he is not sure whether it will succeed in inviting foreign investments into India. “Four months after Modi government took over, the opinion of global investors have gone from optimistic to wait and see. This is problematic. We have not seen specific resolutions as of now. I would rate Modi as A- on a scale that goes down to C-.”
Deepak Kapoor, chairman of PwC India network of entities, said India could be in the next orbit of growth, development and job creation if it shows leadership and courage to build solutions specific to its growth needs. “Turbo-charging value added manufacturing in our country by enabling the private sector, foreign participants, and entrepreneurs of India could be the propellant for getting this Make in India dream into reality,” he added.
Terming the Make in India campaign as “mere repackaging and rebranding” of the earlier initiatives taken during the United Progressive Alliance (UPA) rule, the Congress accused the Centre of “lacking political honesty”. “It is surprising that there is nothing new in it. It is just repackaging and rebranding the initiatives that were taken up during the UPA government,” party spokesperson Anand Sharma said.
India fell to 134 of 189 economies in the World Bank’s Ease of Doing Business index, from 131 last year. It’s ranked 76th of 143 nations in the Global Innovation Index 2014, published by Cornell University, and 71 of 144 in the World Economic Forum’s Global Competitiveness Report.
Amrit Raj contributed to this story.
Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
MoreLess
First Published:26 Sep 2014, 01:15 AM IST
- Top Gainers
- Top Losers
- 52 Week High