Certainty in an uncertain world

Conceived in 2003 for attracting investments to Gujarat, Vibrant Gujarat has come a long way and has helped the state not only secure investments but also market itself as a destination to invest and as a business-friendly state. It all started when Narendra Modi was the Chief Minister of the state. His innovative ideas — the Gujarat model of development —catapulted the state to economic prosperity. The Vibrant Gujarat Regional Conference in Rajkot is yet another edition in this long and rewarding journey. The forum has served as a stage for showcasing India’s economic development potential. Prime Minister Narendra Modi has consistently used this platform to send a message to the world about India’s economic potential.

This time, in his address, he made a very important point that is relevant both for India’s confidence-building and as a message to the world — the US in particular — that India is witnessing an “era of unprecedented certainty amid global uncertainty.” The statement reflects both ambition and confidence. This is significant as the world is going through a phase of uncertainty in political and economic spheres like never before. Supply lines remain clogged and disrupted, and political uncertainty due to ongoing wars in various countries has added to the anxiety of investors and entrepreneurs alike. There is no iota of doubt that India has held its fort well and has not budged despite global uncertainties. Over the past decade, India has spearheaded global growth when most big economies have been struggling with sluggish growth of 2 to 3 per cent. Structural reforms such as the Goods and Services Tax, insolvency reforms, digital public infrastructure like UPI, and an infrastructure push in roads, railways, ports, and renewable energy have reduced transaction costs and policy ambiguity, enabling Indian businesses to grow in double digits. For investors, certainty and a stable political system are the prime considerations for investment. It is this assurance that forums like Vibrant Gujarat provide when it comes from the head of the government - the Prime Minister himself. This can be a game changer for India’s manufacturing sector. India has the potential to become a manufacturing hub of the world, especially when many businesses are opting out of China. Besides, India’s claim to being the world’s fastest-growing large economy stands on firm ground. Strong domestic demand and self-reliance in technology, especially IT, and raw materials have insulated India from external shocks. By becoming a major player in pharmaceuticals, electronics, and renewable energy, India has further consolidated its position as a country where investments are not only safe but growing. As the Prime Minister said, India will soon become the world’s third-largest economy, overtaking Germany and Japan, which will further boost the confidence of Indian entrepreneurs and investors alike. Becoming the third-largest economy will enhance India’s influence and improve its credit ratings in global institutions. However, for the people, growth will have to be measured less by global rankings and more by job opportunities, rising incomes, affordable healthcare, education, and a cleaner environment. That shall be the critical test of “certainty.”