Addressing the Opening
Session of the 3rd Annual Meeting of the Asian Infrastructure Investment Bank
(AIIB) in Mumbai on 26 June 2018, the Prime Minister, Shri Narendra Modi said “A ‘New India’ is
rising. It is an India that stands on the pillars of economic opportunity for
all, knowledge economy, holistic development, and futuristic, resilient and
Since there is huge need for
infrastructure in Member Countries, he called upon AIIB to expand its financing
from 4 billion US dollars, to 40 billion US dollars by 2020 and 100 billion US
dollars by 2025.
He said India has taken many steps to
boost investment and now India is one of the most investor-friendly economies
in the world.
Key takeaways from the speech of PM
Global confidence in India’s economy
is rising. From the point of a foreign investor, India counts as an extremely
low risk political economy.
Agriculture is the lifeline of the
Indian economy. We are promoting investments in warehouses and cold chains,
food processing, crop insurance & allied activities among others.
We have set a target to construct
capacity of 175 GW of renewable energy by the year 2022. Of this, the solar
energy capacity will amount to 100 GW. We have added more capacity to
renewable energy than conventional energy in 2017.
With a size of 2.8 trillion US
Dollars, it is the seventh largest economy in the world. It is the third
largest in terms of purchasing power parity. In the fourth quarter of 2017-18,
we grew at 7.7 per cent. In 2018-19, we are projected to grow at 7.4 per cent.
India and AIIB are both strongly
committed to making economic growth more inclusive and sustainable. In India,
we are applying novel Public Private Partnership models, Infrastructure Debt
Funds, and Infrastructure Investment Trusts to fund infrastructure.
Our macro-economic fundamentals are
strong with stable prices, a robust external sector and a fiscal situation
firmly in control. Despite rising oil prices, inflation is within the mandated
range. The Government is firmly committed to the path of fiscal consolidation
The external sector remains robust.
India's foreign exchange reserves of more than 400 billion US dollars provide
the country adequate cushion. Global confidence in India's economy is rising.
Total FDI flows have increased steadily and India continues to be one of the
top FDI destinations.
The Government debt as a percentage of GDP is
also consistently declining.
The Goods and Services Tax (GST) is
one of the most significant systemic reforms that our country has undergone. It
works on the One Nation – One Tax principle. It reduces tax cascading,
increases transparency, and adds to logistics efficiency. All of this makes it
easier for the investor to do business in India.
The size and growth of the Indian
market hold much more potential. India’s per capita income has doubled in the
last ten years. We have over 300 million middle class consumers. This number is
expected to double in the next ten years. The size and scale of requirement in
India gives the added advantage of economies of scale for the investors.