New Delhi: Mr Ajay Seth, Secretary, Economic Affairs, Government of India today said that from being clubbed as a part of the Fragile Five, a term coined by Morgan Stanley that represents emerging market economies that have become too dependent on unreliable foreign investments to finance their own growth ambitions, in 2013, to becoming the one of the most favoured destination for investment in 2021, India has come a long way.
Addressing a webinar on Sewa aur Samparpan Abhiyan- Social and Economic Reforms under Modi Government, organized by FICCI, Mr Seth said the global investor community now looks at India as the most favoured destination for investments. “India has risen to become not only the favoured destination for investments but also in terms of resilient and sustainable global supply chains. This has been possible due to fundamental structural reforms undertaken by the government under the leadership of the Prime Minister and coupled with a very strong focus on inclusive development,” Mr Seth said.
Foreign capital chooses India because of high returns that the Indian economy promises, he added.
Mr Seth further elaborated that there are fundamental enablers for inclusive development- the JAM trinity being one of them that has been transformative and a game changer. “There has also been a targeted support for persons and entities with weak economic capacities, not just in the pandemic period but throughout the past seven years. Starting with the PM Kisan Yojana, to PM Awas Yojana for both urban and rural segments, the Jal Jeevan Mission and electricity for all, the pace of delivery has been amazing,” he added.
The structural reforms brought in by the government addresses various challenges as we move over to much more efficient use of factors of production, he noted.
“The focus of reforms during the past 18 months of the pandemic period was not just management of impact, but a very strong emphasis on stepping up the reforms so that economy bounces back, and fast growth rates can be reached. Further, Mr Seth said that the finance ministry looks forward to an industry and government partnership for transparent and constructive exchange of ideas.
Speaking at the event, Mr Rashesh Shah, Past President, FICCI and Chairman, Edelweiss Group, said that the social and economic transformation that India is currently going through have all been under the aegis of the Prime Minister. “India is always a work in progress, but India is at a different place than what it was 20 years back; The economic opportunities are getting democratised, and prosperity is percolating down, he said.
Mr Shah further said that multifaceted interconnected reforms have transformed and touched many lives in India. “In the last seven years we have made significant progress in transparency, ease of doing business, removing discriminatory practices so that we truly achieve equality of opportunity,” he said.
We need to look at the interconnectedness of reforms in India. Improving competitiveness, transparency, innovation, and policy stability have been the foundation of all the reforms that we have seen in the last seven years. Local savings, strong investment, consumption, propelled by the reform agenda will result in the start of the Golden Era for the Indian economy over the next five years, Mr Shah noted.
Dr Arvind Virmani, Chairman, Foundation for Economic Growth & Welfare, and Former Chief Economic Adviser, Govt of India, said, one of the significant changes in India over the last few years has been a change in philosophy to a market economy and modern welfare democracy.
Mr Nilesh Shah, Managing Director, Kotak Mahindra Asset Management Co Ltd and Part-Time Member, Economic Advisory Council to the Prime Minister said, we have moved to a confident economy, which is reflected in the growth of market optimism today.
Dr Sachchidanand Shukla, Chief Economist, Mahindra Group said Government has been a doer and now is being an enabler.
Mr Sunil Sanghai, Chair, FICCI National Committee on Capital Market and Founder & CEO, Nova Dhruva Capital Pvt Ltd said that there has been an equitable focus on social, economic, and cultural upliftment of India on the world map in these past seven years.
Mr Dilip Chenoy, Secretary General, FICCI said that India is on a progressive path. “We salute the Prime Minister’s dedication and commitment towards building of a New India- a nation that will ascend to new heights of prosperity and development,” he added.