Modi said the forces of protectionism were raising their heads, with the intention of reversing the natural flow of globalisation amid talk of an interconnected world.
DAVOS: Globalisation is losing its lustre, giving way to protectionism and trade barriers that are gaining prominence but India, marching toward a $5-trillion economy by 2025, remains open for business, Prime Minister Narendra Modi told the World Economic Forum in Davos on Tuesday.
Inaugurating this year's congress, Modi laid out his vision for a new India in a multipolar world during a 50-minute speech that touched upon cyber security, the digital and big data revolutions, artificial intelligence, terrorism and climate change, while promoting yoga, ayurveda and the Indian way of life.
Modi said the forces of protectionism were raising their heads, with the intention of reversing the natural flow of globalisation amid talk of an interconnected world.
"The result of all this is that we get to witness new types of tariff and non-tariff barriers. Bilateral and multilateral trade agreements and negotiations have come to a kind of standstill. Most nations have seen a decrease in cross-border financial investment," he said in a speech that was mostly in Hindi.
The Indian premier's address, positioning him as a global statesman, picked up from where Chinese President Xi Jinping had left off in his address last year in Davos that championed free trade and open market access. It also comes against the backdrop of US President Donald Trump's America First rhetoric and his latest decision to impose tariffs on imported solar panels and washing machines as the White House seeks to create what it says is a level playing field. Trump is scheduled to speak at the World Economic Forum on Friday.
Pointing to India's thriving multicultural and diverse democracy, its conflict-resolution mechanisms and ethos of inclusiveness and plurality, Modi sought inspiration from Mahatma Gandhi and Rabindranath Tagore besides the Upanishads.
He emphasised that India can lead the way and offer solutions to most challenges confronting the fractured world with its guiding principles of trusteeship and harmony. India's offers apt prescriptions to heal the world, he said.
"The fractured world is due to unequal opportunities, domination of natural and technological resources. Which are the powers that give preference to conflict over cooperation?" he said in a veiled reference to the policies of some in the neighbourhood. "In India, we believe in linking people and not dividing them. Diversity is our lifestyle." This is "our real power", which the whole world has come to recognise.
India Inc Welcomes Modi's Comments
Modi said: "Our destiny is linked to a common thread. A thousand years ago, Hindu texts used a Sanskrit phrase — Vasudhaiva Kutumbakam — which means the world is one family. That belief is key to eradicate the fault lines of today."
Corporate India welcomed the comments. "This was an astute speech. He totally changed the rules of enagagement," said Anand Mahindra, chairman of Mahindra and Mahindra.
"He spoke like a global leader, a statesman," said Baba Kalyani of Bharat Forge, while Sunil Mittal of Bharti said Modi powerfully showcased India's strengths. "He suggested unique and Indian responses to global problems."
DATA IS THE CURRENCY
According to Modi, technology-driven transformation is deeply influencing societies, exploring new frontiers and throwing up risks. "Technology has the ability to bend, break and link and a very good example of these three aspects is the use of social media," he said. Data is a huge asset but "the flow of global data is creating the biggest opportunities and the greatest challenges. He who controls the data controls the world", he said.
He urged the world not to make false distinctions when it came to terrorism. "Terrorism is a big threat but an even bigger threat is the distinction between good terrorism and bad terrorism," he said.
REMOVING RED TAPE WITH RED CARPET
Wooing investors, the first Indian prime minister in nearly two decades to attend the WEF, elaborated on the country's investor-friendly climate.
"India is removing the red tape and laying out the red carpet. Almost all areas of our economy have been opened to foreign direct investment... More than 1,400 archaic laws that were an obstacle to doing business" have been abolished in the last three years, he said. "A predictable, stable, transparent and progressive India will continue to be the good news in an otherwise state of uncertainty and flux. An India where enormous diversity exists harmoniously will always be a unifying and harmonising force."
The country's youth are its biggest currency, driving both innovation and entrepreneurship. "They will be job givers and not just job seekers," he said. "You can imagine how many paths can open up for the country and for your business."
The India investment pitch is aimed at kickstarting growth. Already this month, the government has eased restrictions on foreign direct investment in several sectors, including single-brand retail, real estate brokerages and power exchanges. "From being the first to talk about climate change to offering the Indian solution to global problems, the PM has positioned himself firmly in the global seat," said ReNew Power's Sumant Sinha.
"A powerful speech that highlighted that the fundamental problems in the world — terror, poverty, environment are the same everywhere," said Sajjan Jindal of the JSW Group.
