India’s quest to become atmanirbhar (self-reliant) is a “well-planned economic strategy” to make the country a global manufacturing powerhouse, PM Narendra Modi told twenty major global investors & invited them to become part of a “New India” in-the-making that would be free of old practices.
“Today, India is changing & for the better. From fiscal irresponsibility to fiscal prudence, from high inflation to low inflation, from reckless lending creating non-performing assets [NPAs] to merit-based lending, from infrastructure deficit to infrastructure surplus, from mis-managed urban growth to holistic & balanced growth & from physical to digital infrastructure,” PM said at the virtual global investor roundtable on Thursday evening organised by the Ministry of Finance & the National Investment & Infrastructure Fund (NIIF).
The roundtable was focused on discussions around India’s economic & investment outlook, structural reforms & the Govt’s vision for the path to a $5 trillion economy, a person present in the meeting said requesting anonymity.
He said, “It was well-timed as pandemic-hit Indian economy is fast recovering from a record low & it is encouraging investments".
India, which is Asia’s 3rd-largest economy after China & Japan, had seen a record 23.9 per cent contraction in the first quarter of the current financial year because of the Coronavirus outbreak & the ensuing 68-day nationwide lockdown restrictions since March 25.
“But, there are some definite signs of economic recovery,” he said. The Goods & Services Tax (GST) collection, an indicator of consumption, saw a 10 per cent year-on-year jump in October & Purchasing Managers’ Index (PMI) for both manufacturing (58.9) & services (54.1) show expansion last month.
PM Modi said the world witnessed India’s grit & determination to fight the pandemic. “India has shown remarkable resilience in this pandemic, be it fighting the virus or ensuring economic stability,” he said.
He added that “I’m happy to see your eagerness to enhance your engagement with us,” PM said, adding that India is committed to sustainable growth. “Today, investors are moving towards companies which have a high Environmental, Social & Governance [ESG] score. India already has systems & companies which rank high on this. India believes in following the path of growth with equal focus on ESG".
Soliciting investment, PM said, “I’m aware that I’m addressing some of the best financial brains. The ones who can convert new areas of innovation & growth into sustainable business propositions. At the same time, I am conscious of your requirement to provide the funds in your trust, the best & safest long-term returns.”
According to a finance ministry official, large pension & sovereign wealth funds such as Australian Super, British Columbia Investment Management Corporation, Future Fund, GIC, Japan Post Bank, Japan Bank for International Cooperation, Korean Investment Corporation, Mubadala, Nippon Life, Pension Denmark, Qatar Investment Authority & US International Development Finance Corporation participated the virtual conference.
PM Modi said India is the best place for generating long-term returns as it is among the countries that have the lowest corporate tax rates & enumerated policy decisions taken to enable private enterprise to flourish in the country.
“Strategic disinvestment & monetization of assets on a scale not seen before. Historic decision to bring down our share in public sector undertakings to below 51 percent. Policy regimes for private participation in new sectors like coal, space, atomic energy, railways, civil aviation & defence. New Public Sector Undertakings Policy for a rationalized foot-print of public sector,” he said.
He added, “If you want returns with reliability, India is the place to be. If you want demand with democracy, India is the place to be. If you want stability with sustainability, India is the place to be. If you want growth with a green approach, India is the place to be".
Inviting investors to participate in India’s growth, the PM said the country has the potential to catalyse global economic resurgence. “Any achievement by India will have a multiplier impact on world’s development & welfare. A strong & vibrant India can contribute to stabilization of the world economic order,” he said.
Mark Machin, president & CEO of CPP Investments, remarked that the roundtable was very productive. “India is key to our long-horizon investment strategy, focused on growth markets, & we have a strong appetite to build on our existing investments across infrastructure, industrial & consumer sectors,” a finance ministry statement quoted him as saying.
Charles Emond, President & CEO of Caisse de dépôt et placement du Québec (CDPQ), said that “India is an important market for CDPQ—we have invested several billions in sectors such as renewables, logistics, financial services & technology-enabled services—and we aim to strengthen our presence over the coming years".
Jase Auby, chief investment officer, Teacher Retirement System of Texas, USA said that “Pension fund investors dedicate large portions of their portfolios to assets expected to benefit from growing economies & markets. The structural reforms undertaken by India are likely to provide a strong foundation for such high growth well into the future".
Divakar Vijayasarathy, Founder & Managing Partner, DVS Advisors LLP, said the atmanirbhar Bharat is the core of the PM’s economic vision. “He has also highlighted the change in culture at the macro level from fiscal responsibility to fiscal prudence, unplanned urban growth to wholistic growth, physical infrastructure to digital infrastructure.”
He added that “The missing link for the atmanirbhar Bharat would be FTAs [free trade agreements] to boost export demand & additional measures to revive & sustain domestic demand".
Source Link
Picture Source : https://upload.wikimedia.org/wikipedia/commons/0/04/Russian_President_Vladimir_Putin_meeting_with_Indian_Prime_Minister_Narendra_Modi_in_Sochi%2C_Russia_%284%29.jpg
