Prime Minister Narendra Modi recently addressed global leaders at the World Economic Forum (WEF). SK Narvar, Chairman, Capital India Corp. discusses various facets of his address and the transformation of the Indian economy.
Q – How relevant is World Economic Forum for India and the World?
SK Narvar: Under the leadership of PM Narendra Modi, India is emerging as a mega-economy with growing economic influence in the world order. Therefore, the WEF becomes an important platform for India to reaffirm its global leadership and showcase its growing capabilities to invite investments from across the globe.
The WEF has gained importance in the post-COVID world order for the increased need for economic and International collaboration. Hence, it needs to play a critical role in balancing economic interests while maintaining equitable and sustainable growth for developed and developing economies.
Q – How do you think PM Modi’s address at Davos was perceived the world over?
SK Narvar: PM Modi’s vision and various addresses have been acknowledged globally, and WEF2022 is no different. Since 2014, Indian foreign policy has strategically moved towards taking concerted steps to build stronger relations with over 60 countries in the past seven years. PM Modi went beyond India’s “traditional friends” and re-established ties with those countries, like Canada and Israel, where no Indian PM had set foot for decades.
Consequently, India has grown in stature on the global stage, showcasing increasing acceptance of India’s leadership. PM Modi discussed several pertinent challenges, including climate change, supply chain disruptions, and global inflation. He also successfully projected India’s capabilities and prowess on the world stage.
Q – What are the key takeaways from the PM’s address?
SK Narvar: The most important takeaway from the PM address is his subtle emphasis on the trust of Indians in democratic values. And that democratic countries should undertake reforms and lead global transformation. He also emphasized international cooperation on three key fronts, including “One earth, one health”, “Lifestyle for Environment and Pro Planet People”, and “collective and synchronized action” against ongoing and future disruptions.
His address furthered India’s economic interest in two crucial ways. First, it established India’s capabilities to steer reforms, growth, and transformation amidst unprecedented global disruptions. Second, it showcased our nation as an ultimate business destination, with regulatory and tax reforms and infrastructural development and technology adoption happening at an unmatched scale.
Lastly, he reiterated India’s futuristic vision of ecologically conscious growth and our successful transition to a clean energy mix, which is being appreciated worldwide. India’s 2020 Climate Transparency Report has credited India to be the only G20 country to be doing its ‘fair share’ for the two-degree goal. It establishes India’s leadership in global sustainable development.
Q – Why does India struggle in attracting foreign investments and businesses?
SK Narvar: This is a common misconception. India has done pretty well in the recent past. A proof of this is the rise of 42 Unicorns in 2021, mostly backed by angel investors from all over the world. These 42 unicorns recorded cumulatively US$65.9 billion at entry-level valuation, while we have 79 unicorns in total, which are valued at over US$ 272 billion. A balancing act is playing its role, as India has been focusing on promoting and strengthening made-in-India businesses.
That said, India recorded the highest ever FDI of 81.97 billion in the pandemic year of FY2020-2021. The USD440 billion investment that India has achieved in the past 7 years is approximately 58% of the total investment of the past 21 years.
Q – Where does India go from here?
SK Narvar: With stability in national leadership, India can focus its energies on unilaterally growing internally and externally. We need to leverage the demographic dividend of being a reasonably younger nation and use smart-tech to achieve scale. Indian innovations and products should benefit the entire world.
The two areas that India will be focusing on in this decade are reducing the trade deficit by boosting manufacturing and exports and reassessing its natural resources while making further strategic investments globally to counter its biggest International competitor.
