INDIA IN THE TOP SLOT FOR FOREIGN INVESTORS
WITH BRIGHT DOMESTIC ECONOMIC SCENARIO AND STRONG APPROVAL OF CREDIT RATING AGENCIES INDIA ROLLS OUT RED CARPET FOR INTERNATIONAL INVESTORS
At recently held G20 summit in Brisbane, Australia British Prime Minister David William Donald Cameron famously known as David Cameron said that at a time when Eurozone is stalling, Europe should sign more deals with Australia, China and India as they cannot duck growth opportunities in these countries.
Presenting a grim world view he said “six years on from the financial crash that brought the world to its knees, red warning lights are once again flashing on the dashboard of the global economy. As I met world leaders at the G20 in Brisbane, the problems were plain to see. The Eurozone is teetering on the brink of a possible third recession, with high unemployment, falling growth and the real risk of falling prices too. Emerging markets, which were the driver of growth in the early stages of the recovery, are now slowing down. Despite the progress in Bali, global trade talks have stalled while the epidemics of Ebola, conflict in the Middle East and Russia’s illegal actions in Ukraine are all adding a dangerous backdrop of instability and uncertainty.”
Naturally in this disappointing world scenario, countries like Australia, China and India look more attractive as they are much more stable and conflict free. But if you compare these three countries, India seems to be most attractive. In September this year Indian Prime Minister Narendra Modi, while launching “Make in India” global initiative said “India is the only country on the globe where all three important requisites for development and business namely - democracy, demographic dividend and huge demand are available simultaneously.”
He further said, “If we coordinate democracy, demographic dividend and demand in an appropriate manner, then I am sure, we will not be required to advertise India as an investment destination. Vasco de Gamas will be born in each lane, each colony who will reach here searching for India.”
But merely these three contours are not sufficient, they were present earlier also in fact since June 1991 when PV Narsimha Rao became ninth Prime Minister of India after death of Rajeev Gandhi. The team of PV Narsimha Rao and his Finance Minister Manmohan Singh brought a paradigm shift in the Indian economic outlook by almost immediately undertaking efforts to restructure India’s economy by converting the inefficient quasi-socialist structure left by Jawaharlal Nehru and the Gandhis into a free-market system. His program involved cutting government regulations and red tape, abandoning subsidies and fixed prices, and privatizing state-run industries. These efforts to liberalize the economy spurred industrial growth and foreign investment, but they also resulted in rising budget and trade deficits and heightened inflation.
Now with the emergence of Narendra Modi on the Indian scenario, things have changed drastically in the last six months. In place of taking ideological stand on economic issues, Modi is trying to solve the basic problems facing the economy with a pragmatic approach to set the ball rolling.
During the launch of Make in India global initiative Modi said another very interesting thing which reflects his conceptual clarity and dedication towards the purpose to make India best investment hub in the world. He said “these days FDI is discussed a lot. And that is natural too. But I look at that with a different perspective. FDI is a responsibility of Indian citizens also. FDI is a responsibility of 125 crore citizens and an opportunity for the world and those who want to expand their business and industry. When I say FDI is a responsibility of Indian citizens and opportunity for the world then my definition of FDI is – “FIRST DEVELOP INDIA.” And for those in the world who want to expand their business in India, it is an OPPORTUNITY. With these two definitions of FDI, we want to carry forward the journey of our development on these two tracks.”
Modi is walking the talk also. Besides making right noises, he is taking right steps too. He is not only successfully wooing developed nations to invest more and more in India but he is trying to put his house in order too. He coined the phrase RED CARPET NOT RED TAPE. The message was clear to Indian bureaucracy to stop behaving like nawabs and instead work like facilitators for those who want to do something for the country. In short he has changed the complete orientation of Indian bureaucracy.
He is sincerely trying to ensure that investors feel safe about their investments and they are able to do business with ease. His government has repealed large number of obsolete, archaic and colonial laws that created hindrance in business and commerce. Besides taking steps to digitalize governance to bring in much needed transparency in the system, he has agreed to change draconian land acquisition laws also.
His level of commitment towards foreign investors could be gauged from the fact that he has established country specific desks for single widow clearance of FDI projects. He has overhauled ministry of foreign affairs also to turn it into a facilitator of domestic and as well as international investors.
Despite turbulent tenure of UPA-II, all the economic indicators are showing improvement in the past six months since the Modi government took over. The inflation rate was recorded at 5.52 percent in October of 2014 which is lowest in the last five years. BSE is doing brisk business above 28000 mark. The growth rate of country’s GDP (Gross Domestic Product) is also highest in the past three years at 5.63%. The industrial Production in India increased by 2.50 percent in September, 2014 over the same month in the previous year. So with overall improvement in all the basic sectors of economy namely industrial, agricultural and services, Indian economy is heading for sunny days which means besides being a good investment hub, India is emerging as an attractive consumer market also. Obviously Modi government is doing its best to create an investor friendly atmosphere in the country, but international mood about India could be gauged from the ratings of international credit rating agencies. Standard & Poor credit rating for India stands at BBB-. Moody’s rating for India sovereign debt is Baa3. Fitch’s credit rating for India is BBB-. In general, a credit rating is used by sovereign wealth funds, pension funds and other investors to gauge the credit worthiness of India thus having a big impact on the country's borrowing costs. So with an efficient and pragmatic government at the helms of affair in India, bright domestic economic scenario and approval of all the international credit rating agencies, India has indeed emerged as the best investment option in the world.
For more information Visit Us : www.unnatifortune.com
WITH BRIGHT DOMESTIC ECONOMIC SCENARIO AND STRONG APPROVAL OF CREDIT RATING AGENCIES INDIA ROLLS OUT RED CARPET FOR INTERNATIONAL INVESTORS
At recently held G20 summit in Brisbane, Australia British Prime Minister David William Donald Cameron famously known as David Cameron said that at a time when Eurozone is stalling, Europe should sign more deals with Australia, China and India as they cannot duck growth opportunities in these countries.
Presenting a grim world view he said “six years on from the financial crash that brought the world to its knees, red warning lights are once again flashing on the dashboard of the global economy. As I met world leaders at the G20 in Brisbane, the problems were plain to see. The Eurozone is teetering on the brink of a possible third recession, with high unemployment, falling growth and the real risk of falling prices too. Emerging markets, which were the driver of growth in the early stages of the recovery, are now slowing down. Despite the progress in Bali, global trade talks have stalled while the epidemics of Ebola, conflict in the Middle East and Russia’s illegal actions in Ukraine are all adding a dangerous backdrop of instability and uncertainty.”
Naturally in this disappointing world scenario, countries like Australia, China and India look more attractive as they are much more stable and conflict free. But if you compare these three countries, India seems to be most attractive. In September this year Indian Prime Minister Narendra Modi, while launching “Make in India” global initiative said “India is the only country on the globe where all three important requisites for development and business namely - democracy, demographic dividend and huge demand are available simultaneously.”
He further said, “If we coordinate democracy, demographic dividend and demand in an appropriate manner, then I am sure, we will not be required to advertise India as an investment destination. Vasco de Gamas will be born in each lane, each colony who will reach here searching for India.”
But merely these three contours are not sufficient, they were present earlier also in fact since June 1991 when PV Narsimha Rao became ninth Prime Minister of India after death of Rajeev Gandhi. The team of PV Narsimha Rao and his Finance Minister Manmohan Singh brought a paradigm shift in the Indian economic outlook by almost immediately undertaking efforts to restructure India’s economy by converting the inefficient quasi-socialist structure left by Jawaharlal Nehru and the Gandhis into a free-market system. His program involved cutting government regulations and red tape, abandoning subsidies and fixed prices, and privatizing state-run industries. These efforts to liberalize the economy spurred industrial growth and foreign investment, but they also resulted in rising budget and trade deficits and heightened inflation.
Now with the emergence of Narendra Modi on the Indian scenario, things have changed drastically in the last six months. In place of taking ideological stand on economic issues, Modi is trying to solve the basic problems facing the economy with a pragmatic approach to set the ball rolling.
During the launch of Make in India global initiative Modi said another very interesting thing which reflects his conceptual clarity and dedication towards the purpose to make India best investment hub in the world. He said “these days FDI is discussed a lot. And that is natural too. But I look at that with a different perspective. FDI is a responsibility of Indian citizens also. FDI is a responsibility of 125 crore citizens and an opportunity for the world and those who want to expand their business and industry. When I say FDI is a responsibility of Indian citizens and opportunity for the world then my definition of FDI is – “FIRST DEVELOP INDIA.” And for those in the world who want to expand their business in India, it is an OPPORTUNITY. With these two definitions of FDI, we want to carry forward the journey of our development on these two tracks.”
Modi is walking the talk also. Besides making right noises, he is taking right steps too. He is not only successfully wooing developed nations to invest more and more in India but he is trying to put his house in order too. He coined the phrase RED CARPET NOT RED TAPE. The message was clear to Indian bureaucracy to stop behaving like nawabs and instead work like facilitators for those who want to do something for the country. In short he has changed the complete orientation of Indian bureaucracy.
He is sincerely trying to ensure that investors feel safe about their investments and they are able to do business with ease. His government has repealed large number of obsolete, archaic and colonial laws that created hindrance in business and commerce. Besides taking steps to digitalize governance to bring in much needed transparency in the system, he has agreed to change draconian land acquisition laws also.
His level of commitment towards foreign investors could be gauged from the fact that he has established country specific desks for single widow clearance of FDI projects. He has overhauled ministry of foreign affairs also to turn it into a facilitator of domestic and as well as international investors.
Despite turbulent tenure of UPA-II, all the economic indicators are showing improvement in the past six months since the Modi government took over. The inflation rate was recorded at 5.52 percent in October of 2014 which is lowest in the last five years. BSE is doing brisk business above 28000 mark. The growth rate of country’s GDP (Gross Domestic Product) is also highest in the past three years at 5.63%. The industrial Production in India increased by 2.50 percent in September, 2014 over the same month in the previous year. So with overall improvement in all the basic sectors of economy namely industrial, agricultural and services, Indian economy is heading for sunny days which means besides being a good investment hub, India is emerging as an attractive consumer market also. Obviously Modi government is doing its best to create an investor friendly atmosphere in the country, but international mood about India could be gauged from the ratings of international credit rating agencies. Standard & Poor credit rating for India stands at BBB-. Moody’s rating for India sovereign debt is Baa3. Fitch’s credit rating for India is BBB-. In general, a credit rating is used by sovereign wealth funds, pension funds and other investors to gauge the credit worthiness of India thus having a big impact on the country's borrowing costs. So with an efficient and pragmatic government at the helms of affair in India, bright domestic economic scenario and approval of all the international credit rating agencies, India has indeed emerged as the best investment option in the world.
For more information Visit Us : www.unnatifortune.com