India’s quest to become Aatmanirbhar is not just a vision but a well-planned economic strategy: PM Modi at Global Investor Roundtable

The VGIR is organized by the Ministry of Finance, Government of India, and National Investment and Infrastructure Fund. It is an exclusive dialogue between leading global institutional investors, Indian business leaders and the highest decision makers from the Government of India and Financial Market Regulators. Union Finance Minister, Union Minister of State for Finance, RBI Governor and other dignitaries will also be present on the occasion.

The Roundtable will witness participation from twenty of the world’s largest pension and sovereign wealth funds with a total Assets Under Management of about US$6 trillion. These global institutional investors represent key regions including the US, Europe, Canada, Korea, Japan, Middle East, Australia, and Singapore.

Event will witness participation of key decision makers of these funds, i.e., the CEOs and CIOs. Some of these investors would also be engaging for the first time with the Government of India. Apart from global investors, the Roundtable will also see participation of several top Indian Business Leaders.

VGIR 2020 will focus on discussions around India’s economic and investment outlook, structural reforms and the government’s vision for the path to a USD 5 trillion economy.

Here’s what PM Modi said:

“Through this year, as India bravelyfought  the global pandemic, the world saw India’s national character.The world also saw India’s true strengths.It successfully brought  outtraits  that Indians are known for:A sense of responsibility.A spirit of compassion.National unity.The spark of innovation.India has shown remarkable resilience  in this pandemic, be it fighting the virus or ensuring economic stability.This resilience  is drivenby the strength of our systems,  support of our people and stability of our policies.It is because of the strength of our systems, that we could provide food-grains to around 800 million people, Money to 420 million people, and free cooking gas to around 80 million families.It is because of the support of the people who practice social distancingand wearing  of masks that India has given such a strong fight to the virus.It is because of the stability of our policies that India has emerged as one of the world’s preferred  investment destinations.

We are building a New India which is free of old practices.Today, India is changing and for the better.From fiscal Irresponsibility   to fiscalprudence ,from High inflation to low inflation, from reckless  lending creatingNon performing assets to merit based lending, from infrastructure deficit  to infrastructure surplus, from mis-managed urban growth to holistic  and balanced growth andfrom physical to digital infrastructure.

India’s questto become  aatmnirbharis not just a vision but a well-planned economic strategy.A strategy that aims to use the capabilities of our businesses and skills of our workers to make India into a global manufacturing power-house,A strategy that aims to use our strength in technology to become the global centre for innovations,A strategy that aims to contribute to global development using our immense human resources and their talents.

Today, investors are moving towards companies which have a high Environmental, Social and Governance score.India already has systems and companies which rank high on this.India believes in following the path of growth with equal focus on ESG.

India offers you Democracy, Demography, Demand as well as   Diversity.Such is our diversity  that you get multiple markets withinone market.These come with multiple pocket sizes and multiple preferences.These come with multiple weathers  and multiple levels of development.This diversity  also comes with open minds and open markets, in a democratic, inclusive  and law-abiding  system.

I am aware that I am addressing some of the best financial brains.The ones who can convert new areas of innovation and growth into sustainable business propositions.At the same time, I am conscious  of your requirement to provide the funds in your trust, the best and safest long-term returns.

I would like to emphasise  that our approach is of finding long-term and sustainable solutions for issues. Such an approach mixes very well with your requirements.Let me explainusing a few examples.

We have taken multiple initiatives to improve our manufacturing potential.We ushered  inOne nation and one tax system in the form of GSTOne of the lowest corporate tax rates, and an added incentive for new manufacturing.Face-less regime  for income tax assessment and appeal.A new labour laws regime  balancing the welfare of workers and ease of doing business for the employers.Production Linked Incentive schemes in specific sectors.An Empowered Institutional arrangement tohand-hold investors.

We have an ambitious  planto invest Dollars one point five trillion under the National Infrastructure Pipeline .A pioneering  multi-modal connectivity infrastructure master plan is being finalized.India has embarked on a massive infrastructure buildingspree  of highways, railways, metros, water-ways, airports across the country.We are building  millions of affordable  houses for the Neo-middle class.We want investments  not just in big cities but smaller cities and towns too.Gift City in Gujarat is a good example of that.We are implementing mission-mode schemes for development of such cities.

Just like our strategy for strengthening manufacturing base and for buildingworld-class infrastructure, our strategy for financial sector has also been holistic .Some of the major steps undertaken by us includeComprehensive  banking sector reforms.Strengthening of financial markets.Unified authority for the International Financial Services Centre.One of the most liberal  FDI regime .A benign  tax regime  for foreign capital.Suitable policy regimes  for investment vehicles like Infrastructure Investment Trust and Real Estate Investment Trust.Implementation of Insolvencyand Bankruptcy  Code.Financial empowerment through Direct Benefit Transfer and fin-tech based payment systems like Ru-Pay cards and BHIM-UPI.

Initiatives around innovation and digital have always been at the centre of government policies and reform.We have one of the largest number of start-ups and unicorns  in the world.We are still growing very fast.The growth rate in 2019 translates into an average of 2 to 3 start-ups getting set-up every day.

Our government has taken various steps to enable privateenterprise to flourish .Strategic disinvestment and monetization  of assets  on a scale not seen before.Historic decision to bring down our share in public sector undertakings to below 51 percent.Policy regimes  for private participation in new sectors like coal, space, atomic energy, railways, civil aviationand defence.New Public Sector Undertakings Policy for a rationalized foot-print of public sector.

Today, each sector in India is looking up- manufacturing, infrastructure, technology, agriculture, finance and even social sectors like health and education.Our recent reforms in agriculture open up new  possibilities to partner with the farmers of India.With the help of technology and modern processing solutions, India will soon emerge as an agriculture export hub.National Education Policy allows setting up of foreign universities campus here.National Digital Health Mission provides scope for fin-techs.

I am happy that global investor community has been showing confidence in our future.The last 5 months have seen a 13 percent rise in FDI inflows compared to last year.Your active participation in this round-table increases the confidence even more. If you want returns with reliability, India is the place to be.If you want demand with democracy, India is the place to be.If you want stability with sustainability, India is the place to be.If you want growth with a green approach, India is the place to be.

India’s growth has the potential tocatalyseglobal economic resurgence .Any achievement by India will have a multiplierimpact on World’s development and Welfare.A strong and vibrant India can contribute to stabilization  of the world economic order.We will do whatever it takes to make India the engine of global growth resurgence .There is an exciting  period of progress ahead.I invite you to be a part of it.”