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Big drive to woo investors on anvil
India will launch a major drive to attract global investors from Thursday, an effort that will see Prime Minister Narendra Modi interacting one-on-one with business leaders over the next two weeks, economic affairs secretary Tarun Bajaj said.
India will launch a major drive to attract global investors from Thursday, an effort that will see Prime Minister Narendra Modi interacting one-on-one with business leaders over the next two weeks, economic affairs secretary Tarun Bajaj said. He added that India’s pandemic-battered economy is now recovering fast and that another stimulus will further accelerate its growth.
The Virtual Global Investor Roundtable (VGIR-20) will be chaired by the PM on November 5 and focus on discussions around India’s economic and investment outlook, structural reforms, and the government’s vision on creating a $5 trillion economy, Bajaj said on Tuesday.
The roundtable will see the participation of the world’s 20 largest pension and sovereign wealth funds with about $6 trillion of assets under management, he added. These global institutional investors represent key regions, including the US, Europe, Canada, Korea, Japan, Middle East, Australia, and Singapore, Bajaj said.
Bajaj said some of these investors are looking at India as an investment destination for the first time. Prominent funds participating in the event are Australian Super, British Columbia Investment Management Corporation, Future Fund, GIC, Japan Post Bank, Japan Bank for International Cooperation, Korean Investment Corporation, Mubadala, Nippon Life, Pension Denmark, Qatar Investment Authority and US International Development Finance Corporation.
“We also have major Indian industrialists; six of them will participate in this conference to share their experience... They are Deepak Parekh, Dilip Sanghvi, Mukesh Ambani, Nandan Nilekani, Ratan Tata and Uday Kotak,” he said.
Following the conference, the Prime Minister will have one-on-one virtual interactions with each investor-participants over the next two weeks, the economic affairs secretary said.
According to Bajaj, with the Indian economy showing strong signs of recovery, this is the right time for the government to engage with global investors who are looking for an alternative to China. In September 2020, the Purchasing Managers’ Index (PMI) for manufacturing was the highest in at least a decade at 56.8. Even PMI services, which had plunged below 40 in the first four months of current financial year, was at 49.8 in September, very close to the mid-point of 50. An index of over 50 in PMI indicates expansion.
Bajaj said PMI data for services in October, expected soon, may also indicate expansion. He also pointed to the 10% growth in the Goods and Services Tax (GST) collections in October.
Asia’s third largest economy saw a record 23.9% contraction in the first quarter of current financial year because of the Covid-19 outbreak and the ensuing 68-day hard lockdown since March 25.
According to Bajaj, the government has already started consultations with stakeholders before announcing a third stimulus to provide additional impetus to the economy. “It is difficult for me to commit a date but we have received a lot of requests and comments from various sectors and we are looking into it.”
Divakar Vijayasarathy, founder and managing partner at consulting firm DVS Advisors LLP welcomed the meeting. “In times of uncertainty such as the pandemic, such a clear policy communication is essential.”
