Prime Minister Narendra Modi delivers the inaugural address at the third annual Asian Infrastructure Investment Bank (AIIB) meeting in Mumbai on Tuesday, June 26, 2018. (PTI Photo/Shirish Shete)
Showcasing India as the investment hub for the world, Prime Minister Narendra Modi Tuesday said that the country is one of the most investor-friendly economies in the world. Addressing Governors of the Asian Infrastructure Investment Bank (AIIB) in Mumbai, he added that investors look for growth, macroeconomic and political stability with a supportive regulatory framework to ensure protection of their investments.
“India has emerged as a bright spot in the global economy which is driving global growth as well. With a size of $2.8 trillion, it is the seventh largest in the world. It is the third largest in terms of purchasing power parity. In the fourth quarter of 2017, India grew at 7.7 per cent. In 2018, we are projected to grow at 7.4 per cent,” PM Modi said. He was inaugurating the third annual meeting of AIIB. The theme this year is “Mobilizing Finance for Infrastructure: Innovation and Collaboration.” Leaders from several organisations and officials from the government attended the meet.
PM Modi stressed on his government’s commitment to fiscal consolidation and said, “Despite rising oil prices, inflation is within the mandated range. Government debt as percentage of GDP is consistently declining. India has achieved a rating upgrade after a long wait.”
Quoting UNCTAD’s World Investment Report, he added that India continues to be one of the top FDI destinations in the world. “Global confidence in India’s economy is rising. Total FDI flows have increased steadily – more than $222 billion have been received in the last four years,” the Prime Minister added.
Prime Minister Narendra Modi greets Asian Infrastructure Investment Bank (AIIB) President Jin Liqun in Mumbai on Tuesday (PTI Photo/Shirish Shete)
Listing steps taken by the BJP-led government to make the country a preferred investment destination, such as simplifying rules and regulations for businesses, liberalising the FDI regime and implementing Goods and Services Tax (GST), PM Modi invited more investments in the agricultural sector.
“Agriculture is the lifeline of the Indian economy. We are promoting investments in warehouses and cold chains, food processing, crop insurance and allied activities. We are promoting micro-irrigation to ensure optimal use of water with increased productivity. I would like AIIB to look into potential investment opportunities in this field and associate with us,” he said.
Speaking on the need for better access to education, healthcare, financial services and employment opportunities in Asia, he said that institutions like AIIB can play an important role in raising resources. “Sectors such as energy and power, transportation, telecom, rural infrastructure, agriculture development, water supply and sanitation, environment protection, urban development, and logistics require long term funds. The interest rates on these funds need to be affordable and sustainable,” he said.
He further said that AIIB’s investment of $200 million for the National Investment and Infrastructure Fund has given it a boost.
He concluded saying that we are now living in the ‘Asian Century’.
“A ‘New India’ is rising. It is an India that stands on the pillars of economic opportunity for all, knowledge economy, holistic development, and futuristic, resilient and digital infrastructure. We look forward to our continued engagement with our development partners including AIIB,” he concluded.