- The subject matter will be viewed with trepidation, apprehension, and a smirking smile denoting we know it all disposition by those closely following the fortunes of what’s happening in the country vis-à-vis private investments. As you are aware, several states lay out red carpets to invite prospective business investors to pump in requisite moolah and leave no stone unturned in attracting them by offering interesting incentives to set up shops. Of course, any country aspiring to progress economically must ensure the developmental agenda is fulfilled by attracting prospective investors, that is bound to have a cascading impact in further spreading the varied economic activities. Who does not wish to be identified as a developed state in India?
PC: ETV Bharat
- As such, investors’ meet/summit always evoke great interest among the government in power, which aims to create that positive environment for the business houses and the citizens, alike. The moot point to ponder over here is what is the reality surrounding such announcements made by the government soon after the investors meet concludes. We know how the industry promises megabucks at government biz summits. For all that we know, these summits often turn out to be a mere exercise in making headlines rather than aiming at making the bottom line healthier. Thus, when we see a headline saying MoUs worth xx lakh crores signed in a state’s business summit, tell ourselves this: what we have just read is mostly fiction. Sample the below.
PC: Mid-day
- Recently, Maharashtra CM Fadnavis signed 61 MoUs in Davos in January, worth Rs 15.7L cr. Less than three months into the year, investor summits have already generated other fairy tale MoUs: Kerala Rs 1.5L cr, Assam Rs 2.5L cr, Chhattisgarh Rs 3L cr, Bengal Rs 4.4L cr, Karnataka Rs 10.6L cr, Odisha Rs 16.7L cr, and MP, a staggering Rs 30.8L cr. Mind you, most states cannot absorb this much investment over even a longish period. No state gets more than a tiny fraction of what’s MoUed, some not even that. This is not a new phenomenon and has been going on for a while. You name it, every political leader of repute has been indulging in this rhetoric over the last few years, but results have remained the same. Not much investment is trickling in, forget pouring in.
PC: The Hindu
However, if MoUs are barely worth the official letter-headed paper they are printed on, why go through all the effort? Simple, to get the headlines and impress one and all. Leaders feel good seeing newspapers print investment promises with many zeroes. Captains of industry feel good, in part because they have made leaders feel good. And it’s not just here. This is seen globally. Is failure to invest a MoUed amount, even over a long period, a breach of promise? Not at all. This ain’t a matter of bottom lines, it’s all about headlines, you see. Leaders and industry captains will stay happily MoUed. You know what they say for those, mostly fictional, happily married couples – till death do them apart. Why stop our leaders from soaking in the glory, even if it’s false?
 at business summits, often amounting to lakhs of crores that are unrealistic for states to absorb even over extended periods. These investment summits primarily serve to generate positive headlines and political goodwill rather than delivering actual economic benefits, with only a tiny fraction of promised investments ever materializing.){kind=link}