India promotes manufacturing sector to encourage investment
India is launching a new campaign to encourage investment in the nation’s manufacturing sector.
India has been struggling to keep pace with growth in the economies of many of its rivals. With a current account deficit, high inflation and weak factory output, it is now considering a raft of new measures to increase foreign direct investment and get the country growing fast once more.
This week, the government will officially announce a new programme aimed at luring global industry into India’s manufacturing sector.
‘Make in India’ will be a large-scale campaign intended to boost the manufacturing sector, create jobs and kickstart better economic growth.
The world’s top 3,000 companies will be invited to explore investment opportunities in the country, while Indian embassies around the world will help to maintain the momentum by getting involved to advocate for the country. Executives from companies including Airbus, Vodafone, Honda and Samsung have already confirmed their attendance at the launch event.
Further changes will also be introduced to simplify the process of doing business in India. Currently, the International Finance Corporation and World Bank’s Doing Business survey places India 134th out of 189 economies on the ease of doing business – a position on which New Delhi is looking to improve. Central government is planning to work with states on revamped tax policies and deregulation to ease the path for foreign investment.
An expert panel has already been established to resolve problems faced by foreign firms seeking to invest in India, but it is also looking into even faster mechanisms for dealing with such issues.
The Indian Express reports that the government are even discussing the idea of a digital wall on its website allowing real-time conversations between investors and officials.
The government apparently sees the plans as part of a bid to boost manufacturing growth to ten per cent per year on a sustainable basis. That’s nothing if not ambitious, but concerns remain over whether the country is investing enough in its infrastructure to become the global manufacturing hub it seeks to be. Either way, it will be fascinating to see where India goes from here.
< Top image: Tarun Kumar >