Prime Minister Narendra Modi on Thursday invited global businesses to invest in India. “Very few countries will offer the kind of opportunities India does," he said, addressing an audience at India Global Week 2020. He also spoke of several economic reforms the government has initiated.
There’s no denying that India needs to signal its openness to the world as an investment destination at a time the country has been in the global news for a turn towards self-reliance, reminding investors of our closed economy, pre-1991. With commercial ties in flux worldwide, partly as a result of Chinese pugnacity, India has an opportunity to present itself as a good place to set up shop. Recent policy tweaks have been aimed at this, with new sectors opened to foreign inflows, lower corporate taxation, and red tape cut. Yet countries such as Vietnam and Bangladesh seem to be proving more attractive. It would appear that our business environment is still not as hospitable as global businesses would like. Or, perhaps, India simply needs its economy to show greater promise. Modi recently hinted at factor market reforms. Such big moves might do the trick.