India’s economic story in 2015, notwithstanding small hiccups, has been very encouraging to say the least. The GDP growth from 7 per cent in the second quarter to 7.4 per cent in the third ensured India retains its position as the fastest growing major economy in the world.
Not just GDP but all the key macro-economic indicators such as manufacturing output, inflation and financial services growth, to name a few, suggest India has made significant progress.
FDI growth along with various international studies and surveys, including the World Bank, the World Economic Forum, Ernst & Young and Grant Thornton, highlight India as an increasingly sought after investment destination. These demonstrate the Modi impact has been very positive on the international investor community, who are prepared to back the Indian Prime Minister’s vision of a 21st century knowledge economy enabled by technology and world class infrastructure.
The government has made great progress in other areas of governance as well. However, now it is time to harness all its energy and focus the efforts of the public and private sector to alleviate crippling poverty that still affects hundreds of millions of Indians. Equipping them with the right skills and support system and ensuring they have the jobs to beat the poverty trap should be the number one priority of the Modi government in 2016. Economic growth with social justice, with opportunities for the many, is the key defining vision of this government and it must be laser focused to deliver it.
For me, the real success of the 2015 lay in PM Modi’s economic diplomacy to raise investments to fund his transforming economic vision. Embracing and connecting with the successful global Indian diaspora world over and making them a part of India’s foreign policy arm to boost trade and investment was undoubtedly impressive. This projection of soft power is one I believe will continue to deliver dividends for India.
Whether it is the “sons and daughters of the Sun” or focusing on developing base infrastructure such as education, healthcare, pharmaceuticals, IT & Telecoms – this soft power enables India to carve out a niche for itself as an influential global player. And how effective this is in garnering influence in the world would be tested in the latest battleground – the hearts and minds of Africa. China with its roads and hard infrastructure projects versus India’s soft infrastructure – the competition between the two Asian giants will be keenly felt in the African continent.
Not just in Africa, but India’s outbound investment will be sought after in almost all parts of the world. This will come not only from large scale Indian corporates such as Tata and Reliance only, but 2016 would most likely see Indian SMEs banking on this soft power strategy to increase their global footprint. The competition to attract Indian investment is growing and those countries such as the UK who currently receive a large share must remember that flow of investment and flow of people go hand in hand. The growing perception in India of the UK’s immigration policy is “We want your business but not your people”. This is worrisome, even if accepted as only a perception, and must change. The same applies to other advanced economies seeking stronger business ties with India.
This was one of the key messages that came out of the India Inc. Policy India summit in London – one of the many flagship activities India Inc. has embarked on in 2015. To name a few, we hosted Digital India events in three countries, launched the Clean India and Solar India programmes, and held an international Waste Management Conclave in New Delhi. We want to build on this momentum in 2016 with the launch of India Inc.’s year of innovation as well as contribute to the development and implementation of the Hygiene Index.
Against this backdrop, this Yearend Edition of ‘India Global Business’ brings you a comprehensive re-cap of the year. Our central focus is PM Modi’s visit to the UK – and we publish a candid interview with his counterpart, Prime Minister David Cameron, on the “landmark visit”. We also cover the India Africa Summit besides the usual selection of expert columns and analyses on what 2015 had to offer as well as what the New Year could hold in store.
Manoj Ladwa is the founder of India Inc. and chief executive of MLS Chase Group @manojladwa
