Prime Minister Narendra Modi, speaking at the opening session of the
World Economic Forum, invited global investors to Asia’s third largest economy,
elaborating the measures his government has taken to promote ease of doing
business in India.
Besides effectively removing the red tape by abolishing plenty of
obsolete laws that were more a hindrance than a help to doing business, India
is now ‘laying out the red carpet’ to the investors and “Almost all areas of our economy have been
opened to foreign direct investment” he added.
Modi’s efforts are focused on attracting
foreign investment to kick start growth in India’s $ 2.3 trillion economy which
is forecast to expand at the slowest pace since 2014 this year.
Thoughtful relaxations on restrictions on
foreign investment in various sectors like single brand retail, real estate
brokerages and power exchanges, defence, insurance, pension highest foreign
investment inflow has been made possible in the year ended March 2017.
Now, foreign airlines can invest in state
carrier Air India.
Expressing concern over ‘shrinking’
globalization, he rued saying .
"Trade agreements have come to a standstill. Growth in the global supply
chain has also stopped.”.
"His Davos address followed US President Donald Trump’s
decision to impose tariffs on imported solar panels and washing machines, in
his first major protectionist move to level a playing field he says is tilted
against American companies.
Trump is scheduled to speak at the World Economic Forum on Friday.
Demonetization and hasty implementation of GST appear to have
produced no positive results to the expected level which has resulted in less
of revenues putting the strain on the budget deficit. It aims and has to bring
down to 3.2 percent of gross domestic product in the current fiscal year. This
annual budget must see and create an opportunity to revive growth.
Modi’s government has certainly some positives to its immense
credit. Moody’s upgradation of India for the first time in 14 years and India
finding itself in the top 100 in the World Bank’s Doing Business rankings,
narrowing the gap with rather the permanent competitor China. And these
achievements are not something just to be laughed off.