- As reported extensively over the last few months, the Indian economy is poised to record GDP growth much better than some of the most developed nations in comparison. Despite the pandemic restrictions and the ongoing Russia-Ukraine conflict playing spoilsport resulting in global supply chain disruptions, the Indian economy appears to be staying afloat revealing our inherently strong fundamentals. Indeed, the geopolitical and geostrategic machinations that have undergone tremendous changes in the last few years would be an understatement. The global community is divided vertically vis-à-vis China and the USA on the one hand, and the European Union-Russian, on the other hand, is also too well known.
PC: Freepik
- No wonder, the expected and anticipated growth aspects have taken a severe beating everywhere. Against this backdrop, the shining example has to be the way the Indian economy duly backed by the central government and the RBI’s fiscal and monetary moves have helped to sustain growth. It is no mean achievement by any stretch of the imagination. Also, attracting foreign investments when China as a preferred destination has taken a back seat becomes extremely important in the context of India’s aspirational growth factors too. No wonder, several states are vying with each other to attract prospective foreign investors commensurate with the altered global equations.
- We know how the squabble between Karnataka and Telangana was played out recently as to who bagged the latest foreign investment amply demonstrates the healthy competition among the seekers. Mind you, both are headed into assembly elections this year adding that much more colour to the proceedings. Of course, there were typical pre-poll anxieties and image management on display. Both states’ governments raced to social media to claim wins. Letters from the foreign investor were tweeted, and the letter of intent was seemingly confused with a done deal. But theatrics aside, that Apple partner and Taiwanese contract manufacturer Foxconn has set its eyes on investing in Telangana and/or Karnataka – in another sign of small but significant shifts away from its main manufacturing base in China – is good news for both states and all around. Wooing foreign investors in multiple ways has become the norm for many CMs and states.
PC: Freepik
- Look at the number of global investor summits happening around the country. The bulk of the FDI flows into Maharashtra, Karnataka, Tamil Nadu, Gujarat, and Telangana. These states are considered as most developed and are ahead in infrastructure, network, capacity, policy stability, and reasonably strong in law and order. Little wonder they are also destinations for the bulk of India’s migrant workers. However, there’s a stark difference between South/West and North/East here. Despite signing MoUs worth lakhs of crores, North/East states like UP, MP, Bengal, Bihar, and Jharkhand have barely moved beyond a summit’s photo-ops. Following what South/West states vis-à-vis conducive environment for investment would be most imperative. To begin with, focusing on adequate infrastructure, satisfactory connectivity, efficient law and order, without fiefdoms political or otherwise, literacy levels being above average, and women made to feel safe would go a long way in helping North/East states to be at par with their South/West counterparts. The parties in power should focus on this with absolute diligence
