As G20 President India has an opportunity to emerge as a perfect choice for manufacturing and a preferred trading partner
Some of the leading economies of the world are facing challenges to maintain the expected economic growth rate. Although the abundance of cheap labour and the initiative towards FDI (foreign direct investment) has made certain economies with a promising prospect the strong foundation and tremendous trust generated by Indian banking, public and private sector units provided a much-needed impetus during and after Covid-19. Although initially, India was not very aggressive in its economic reforms, it gradually started creating an inner web of confidence-building measures to provide not only economic growth but also ensure the development of each section of society, thus, coming out with a framework of socio-economic justice that helped in building trust. Numerous Indian business experts and investors have carved a niche for themselves overseas, particularly in the field of information technology, biotech, pharmaceuticals and health care where even advanced countries need to still catch up. Besides, India’s indigenous entrepreneurs and industries certainly give it a huge advantage over the higher level of FDI of other leading economies of the world. For example, the Chinese export-led manufacturing progress is mainly based on FDI, which is hardly a substitute for home-grown entrepreneurship. India’s strength lies in creating its internal markets as it already has a fast-growing middle class.
Financial dealings are not as simple as they appear to be and require constant monitoring by competent authorities. Besides, India has brought forward all necessary requisites required for a good, business-friendly environment for investors across the globe. The trust generation by India’s services-driven industry and an excellent political system based on pluralism and democracy further strengthen its institutional stability. Recently, there has been a revolution in the process of opening up start-ups as they have crossed the landmark of more than ten thousand providing a huge impetus to employment generation during the last five years alone. The robust digital Payment System and neo strategy of start-ups have created more than one lakh of both direct and indirect jobs. The strategy to enhance its operational and support network, ranging from rural to urban areas, ensured a much higher rate of return on assets. India also made magnificent strides in several areas, including knowledge and skill-based intensive services such as telecommunication, pharmaceuticals, biotechnology, professional services of doctors, teachers and management professionals, etc.
In the coming days, various programmes under the aegis of G 20 will get support and agreement about limiting climate change issues and opening up gateways for renewable energy and development in technological knowhow along with channelizing the sources of power generation and creating a mechanism to withstand sudden challenges. Even though the going is getting tough globally, the G20 Presidency has provided a ripe time for India to emerge as a perfect choice not only for manufacturing and assembling in the economic arena but also for being the perfect partner globally in myriad areas. The cooperation of G 20 nations can also provide new techniques and develop challenging strategies to meet the needs of even the most vulnerable nations which would lead to the creation of an inclusive world society, though may seem like a chimaera. This will bring a positive change in International Relations towards more contiguity and harmonious relationship.
(The writer is the recipient of the Bharat Gaurav Award and is a professor and expert on strategic affairs)
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