Saturday, April 23, 2016

Investment Climate and Economic Growth in India

Investment Climate and Economic Growth in India

Calling Indian Government, a Hindu Nationalist Government may be cosidered as an advantage in present context of world politics. It can be seen as an opportunity. India was criticised in past by Western media because of its close friendship with Russia and a mindset of Socialism.

Are the Western countries happy with Muslim countries of Asia at present? Certainly not. They are in need of a natural partner like India to counter military power of Russia, military and economic power of China and terrorism from M world. The developed world is in search of developing world to fetch more money/profit through increasing exports by grab their growing markets. They want to invest to reduce production cost and increase rate of return. 

Their eyes are on grow rate of our country and they want to make money out of it provided India offers 'red carpet' in place of 'red tape'.At home, people voted for the new government for development and economic growth. The 'country of youngs' need investments to create million jobs a month to meet with the aspirations of the young voters. If they are not given skills and jobs, the demographic dividend will become a liability and the same lot may pull down the government in the next general elections. We need to remove  the mismatch of demands for skilled workforce and supply of labour force. India is in need of higher level of investments from domestic and global markets to improve infrastructures.When US and other western countries are not having warm and friendly relations with Muslim countries from Lebanon to Indonesia, (Hindu Nationalist) 

Government of India makes a difference of friendliness. It will place the mainstream culture of Hindus on world knowledge more better than before.If we concentrate on cleanliness; security, safety and treatment to women, particularly the foreign tourists, women (Only one city of New York has 50 million tourists per annuam and India total is 6.6 million tourists);  transparency, consistency and speed of govt decisions; India has great potential of development in coming days as it's Economic Complexity Index (0.21) is lower than that of China (0.88), Germany (1.96) and USA (1.51).PM Modi's visit was overwhelmed by all sections here in America. His reception was like a 'Rock Star'. His speech was broadcast on all screens of Time Square and linked with FM Radio. During dinner party with 800 business guests, he photographed with each one of them. He made it clear that the mandate is for development and quality of life. The business groups after meeting him, are enthusiastic to do business with him/India. It is economical for them to produce near the consumption centre.

All are ready to do business with India provided our bureaucracy and politicians think globally. Each one of us is busy in guarding or expanding power and territory to earn importance in public life at the cost of development. Subsidy for votes; short money for luxury of life;  money for running parties and win elections; federal disunity in decision making like GST, etc, are major hurdles of removing red tape ('less red tape, more red carpet') from Indian decision making process.Are we ready for his dream India: one day registration to start business, digital India, less government good governance?

Are we united in thoughts, united in strategy, united in development? We need to give a new look to the federal structure.No matter how you named? It matters what you do? How you do?We are world leader in terms of "Intellectual Property". But have we given space to these IP to grow and deliver in the Country?If there is 'ease of entry and ease of exit' for high quality investments, the same media will praise us for our great work. Calling Hindu Nationalist Government may be technic to create pressure to get higher FDI percentage in the area of defence and insurance.Let us focus more on Economic Pull and Ease for doing Business in India.

Punamchand, '85, Gujarat, Ph-527 October 2014, New York


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