Saturday March 23, 2019
Home Business Now India is ...

Now India is One of The Most Open Countries for FDI: Narendra Modi

Modi had conceptualised the summit as Gujarat Chief Minister in 2003 to position the state as an ideal investment destination after the 2002 riots.

0
//
www.trafficchallan.co.in

Prime Minister Narendra Modi on Friday said that his government had made doing business in India easier, cheaper, faster and smarter with his term accounting for almost 45 per cent of the Foreign Direct Investment (FDI) that the country received in the last 18 years.

Speaking at the inaugural function of the Vibrant Gujarat Global Summit 2019 here, he said India was now one of the most open countries for FDI with over 90 per cent approvals put on the automatic route.

“In the last four years, we have received FDI worth $263 billion. This is 45 per cent of the FDI received in last 18 years,” Modi told the gathering.

He said India was among the top 10 FDI destinations.

FDI
PM Speaks on FDI www.news.civilserviceindia.com

Modi, who is on a three-day visit to his home state to throw open his pet biennial Vibrant Gujarat Global Summit, said the India of today was a land of “immense opportunities” being the only place that offered democracy, demography and demand.

“Fifty cities in India are ready to build metro rail systems. We have to build 50 million houses. The requirement of road, rail and waterways is enormous. We want world class technologies to achieve our goal in a faster and cleaner way. India is thus, a land of immense opportunities.” he said.

The Prime Minister said the challenge for India, as in most emerging economies, was to grow horizontally as well as vertically to ensure that the benefits of development spread to regions and communities that have lagged behind while also meeting enhanced expectations in terms of quality of life, quality of services and quality of infrastructure.

“We are well aware that our achievements, here in India, will directly impact one sixth of humanity.”

Modi said his government had removed the barriers which were preventing India from achieving its full potential and now it was ready for business like never before.

The government has made doing business easier. cheaper, faster and smarter, he said.

“In the last four years, we have jumped 65 places in the global ranking of World Bank’s Doing Business Report. From 142 in 2014 to 77 now, but we are still not satisfied. I have asked my team to work harder so that India is in the top 50 next year.

“We have also made doing business cheaper. The historic implementation of Goods and Services Tax and other measures of simplification and consolidation of taxes have reduced transaction costs and made processes efficient.

“We have also made doing business faster through digital processes, online transactions and single point inter-faces,” he said.

According to LocalCircles, each person who voted in the survey is registered with the portal with their detailed information and in many cases they shared their residential address.
Doing business in India now easier, cheaper, faster, smarter: Modi

He said his government had made doing business smarter by insisting on IT based transactions and digital payments including direct transfer of government benefits.

Modi added that he understood that being a young nation, India needs to create job opportunities and better infrastructure, which are both linked with investments.

“Therefore, in recent years, there has been unprecedented focus on manufacturing and infrastructure,” he said.

Listing the achievements of his government, he said for the first time, India had become a net exporter of electricity, had installed transmission lines at an unprecedented pace and had doubled the speed of road construction with rural road connectivity now at 90 per cent.

Also Read: PM Narendra Modi to Unveil National Film Museum in Mumbai

“At 7.3 per cent, the average GDP growth, over the entire term of our government, has been the highest of any Indian government since 1991. At the same time,the rate of inflation at 4.6 per cent is the lowest for any Indian government since 1991, when India began its process of liberalisation,” he said.

Modi had conceptualised the summit as Gujarat Chief Minister in 2003 to position the state as an ideal investment destination after the 2002 riots. (IANS)

Next Story

Are There Enough Jobs In Prime Minister Narendra Modi’s Led India?

“More young people are entering the labor force, millions want to leave agriculture but can’t find construction work because construction activity has slowed down because the investment rate in the economy has slowed down.”

1
VOA
Modi’s Bharatiya Janata Party dismisses concerns about the job data saying it does not capture the real picture because it focuses only on the 15 percent of Indians who work in the formal economy. Pixabay

For people streaming in from rural areas around New Delhi, the first stop is a collection of busy city intersections where contractors select daily wage labor from the crowds of young and old waiting every morning to get work.

Many standing at these intersections say they get work for barely half the month. “I have the ability to work hard. I never turn down any work. But I would prefer to get a cleaner, permanent job,” says 29-year-old Tek Chand. “The problem is one day I have money to buy rations, the next day I don’t.” Like millions of others, he migrated from his village three years ago to seek work and a better life in the city.

FILE - Indian Prime Minister Narendra Modi, center, arrives with his cabinet colleagues on the opening day of the budget session of the Indian Parliament, in New Delhi, Jan. 31, 2019.
Indian Prime Minister Narendra Modi, center, arrives with his cabinet colleagues on the opening day of the budget session of the Indian Parliament, in New Delhi, Jan. 31, 2019. VOA
As India prepares for general elections on April 11, Prime Minister Narendra Modi is being attacked by opposition parties for failing to make good on a promise he made in 2014 to create millions of jobs for India’s huge young population. Modi’s Bharatiya Janata Party rebuts that criticism and says India is generating new opportunities as it becomes one of the world’s fastest growing major economies.

Job creation is a massive challenge for a nation with one of the world’s youngest populations — half the country’s 1.3 billion people are under the age of 25.

Recent data shows that joblessness has soared to record high levels. Opposition parties have made joblessness one of their principal election planks and have accused the prime minister of failing the estimated 8 to 10 million young people who enter the workforce every year.

The independent Mumbai-based Center for Monitoring Indian Economy estimates that unemployment reached 7.2 percent last month and that 11 million jobs were lost in 2018. With a working population of 500 million, that translates into more than 30 million people waiting for jobs. An unpublished official survey that showed unemployment at a 45-year-high has also been widely quoted by Indian media.

India's main opposition Congress party President Rahul Gandhi speaks during a public meeting at Adalaj in Gandhinagar, India, March 12, 2019.
India’s main opposition Congress party President Rahul Gandhi speaks during a public meeting at Adalaj in Gandhinagar, India, March 12, 2019. VOA

On the campaign trail, the head of the main opposition Congress Party, Rahul Gandhi, who is seen as Modi’s principal challenger, talks repeatedly about a “jobs crisis.”

“Our government is refusing to accept that we have a massive crisis and potential disaster in front of us,” Gandhi told a group of university students in New Delhi recently, many who will be first time voters.

Modi’s Bharatiya Janata Party dismisses concerns about the job data saying it does not capture the real picture because it focuses only on the 15 percent of Indians who work in the formal economy. It points to a recent industry report that jobs have been created in the medium and small sectors.

The BJP says millions of people have found work in the transport and infrastructure sectors or as delivery boys in booming online businesses as India becomes one of the world’s fastest growing major economies. They point out that the issue is not jobs but livelihoods, and point to millions of people who are not counted in job data.

They are self-employed people like cab owner Chain Pal Singh. As the app based taxi business boomed, Singh’s friend, who operated a cab, persuaded him to quit his job and take out a loan to buy a car. His decision has paid off — in four years he has earned enough money to invest in two more cabs.

Singh says he is much better off than when he held a job. “I used to earn about $225 dollars a month. Now in some months I can earn almost double that amount. Its beneficial for me.”

Following defeats in key state elections in December, Prime Minister Narendra Modi told parliament last month, “This truth has to be acknowledged. The unorganized sector has 80 to 85 percent of the employment.” He pointed to millions of commercial vehicles sold in recent years and questioned if they had not generated jobs for drivers.

Economists admit India’s large informal sector has made it difficult to calculate employment, but they say joblessness or underemployment remains the country’s biggest challenge. While scarcity of jobs is not a new problem, two disruptive economic steps in the last two years exacerbated the problem.

In 2016 a sweeping currency ban meant to tackle the problem of illegal cash, dried up jobs as it created huge currency shortages, particularly in small businesses and in the countryside. A poorly-implemented tax reform known as the Goods and Services Tax a few months later was another blow to businesses.

Meanwhile, Modi’s “Made in India” campaign, which aimed at making India a manufacturing hub like China, has made a slow start and sluggish labor-intensive sectors cannot cater to growing numbers of job seekers.

“We can’t keep patting ourselves on the back that we are the fastest growing economy specially if all these other indicators are not growing at a rate that will absorb the growing labor force,” says Santosh Mehrotra, a human development economist at the Jawaharlal Nehru University in New Delhi.

“More young people are entering the labor force, millions want to leave agriculture but can’t find construction work because construction activity has slowed down because the investment rate in the economy has slowed down.”

Also Read: The Mental Health ‘Epidemic’: About Six in Ten Teen Say, They Feel A Lot Of Pressure To Get Good Grades

He points out that exports, another sector that created a number of jobs has also not been performing well.

As the campaign heats up, the opposition will try to keep the spotlight on jobs, or lack of them, even as the BJP tries to focus on national security following a recent confrontation with Pakistan. The final verdict on whether to give Prime Minister Modi a second term in office will be delivered by millions of voters when they cast their ballots. (VOA)

One response to “Are There Enough Jobs In Prime Minister Narendra Modi’s Led India?”

  1. If the employment picture is bleak despite the construction of so many more Kilometers of roads, railways, air ports, bridges, toilets and other infrastructures compared to the five or even ten years of UPA government, imagine where we would be if we had UPA III government .