India is, arguably, the best place to invest for foreign investors. The challenge now is to utilise that money effectively and create jobs and growth necessary to meet the aspirations of Indians in cities and rural areas alike.
Prime Minister Modi’s economic diplomacy and reform initiatives domestically have ensured confidence and have significantly increased the FDI flow into the country.
He writes: “Several leading human resource consultancies such as Teamlease, Manpower Group and Kelly’s have come out with reports saying the Make in India and Smart Cities initiatives are likely to create at least half a million direct jobs over the next five quarters. Since each direct job in manufacturing and infrastructure creates about four additional jobs in upstream and downstream sectors and in services, these can be expected to generate about 2.5 million additional jobs by the end of 2016-17.”
But getting there means crossing a few hurdles and tackling bottlenecks – as pointed out in the analysis.
A BCG study on Make in India says: “India is starting from far from a position that is far from advantageous. India’s manufacturing sector, with a 15 per cent share of GDP, compares poorly with peers like Thailand, Malaysia and Indonesia. India also suffers from such critical drawbacks like a lack of enabling infrastructure, poor perception of India in terms of ease of doing business, and a lack of proven ability to compete on a global scale. At the same time, India’s long-term prospects remain intact, with its core strength of human resource, a strong base of entrepreneurs and a robust and growing domestic demand.”