One of the most awaited speeches at the World
Economic Forum in Davos was that of Narendra Modi, who is the first
Indian prime minister to attend the high-profile forum in more than two
decades.
The timing is highly important: India is
looking for investment as its economy has been struggling for the last
six months. The country needs high growth to employ its population of
1.3 billion.
Modi's speech pitched India as a hotbed for opportunities.
"I
invite you all to come to India if you want wellness with wealth,
wholeness with health and peace with prosperity. You will always be
welcomed in India wholeheartedly," he said.
Back in
India, the economy is slowing down and job growth is sluggish. Modi’s
"Make in India" plan has not taken off yet, but he is looking for ways
to fulfill the needs of the country's population.
Indian economists say bureaucracy still remains a major hurdle and the government led by Modi hasn't done enough.
"Unfortunately
till now we still have high taxes. We still have high regulations and
we have too much of the government. The fact is that Prime Minister Modi
wants minimum government, but so far the minimum government has not
taken place," economic analyst Madhav Nalapat told CGTN.
Modi
has repeatedly promised an easier business environment for other
countries to set up enterprises in India. In Davos, he repeated the same
pledge.
But on the ground, things haven’t changed.
From tax structure to labor and land reforms, too much bureaucracy has
always been India’s bane.
The complicated red tape
concerns land use, staff hiring and investment, economist Subhomoy
Bhattacharjee said, noting that India has productive resources, of which
the country is not making full use.
India's economy
is expected to reach five trillion US dollars by 2025 with an urgent
need to create jobs for its young population. Therefore, Modi’s vision
for India includes a global manufacturing hub, a dream that still needs
major structural reforms.
Time is also running out
for India. The country has a demographic potential for the next 20 to 25
years after which its population will start ageing.
For now, India’s seven-percent growth is not enough to spread its benefits to the large population.
"We
need 11-12 percent growth. We need the same kind of growth that China
had during the period of Deng Xiaoping when he systematically launched
economic reforms between 1981 and 1983. We need a double-digit rate of
growth, seven percent is not enough”, said Nalapat.
Courtesy: CGTN’s Shweta Bajaj
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