Harsh Vardhan Shringla credits PM Modi's 5-nation tour for boosting global investor confidence, says FDI remains "important requirement" for nation
New Delhi, May 20
Foreign Direct Investment remains a focus in India's economic strategy to secure interest-free capital, drive technological advancements, and stimulate job creation, said former Foreign Secretary Harsh Vardhan Shringla on Wednesday, highlighting the steadfast efforts and role of Prime Minister Narendra Modi in attracting long-term investments.
Speaking in an interview with ANI, Shringla addressed recent apprehensions regarding a slowdown in foreign inflows, emphasising that securing investments is a continuous priority for the nation.
"Foreign direct investment is a constant important requirement because it is a very important way that you can bolster up your foreign exchange reserves without having to pay interest on it, and it brings you technology, it creates employment," Shringla remarked.
Shringla highlighted Prime Minister Modi's recent 5-nation tour as a factor in diversifying and strengthening India's economic partnerships globally. He pointed out that the success of these diplomatic efforts is reflected in the growing financial commitments from a varied group of nations.
"Prime Minister Modi has gone out of his way to engage countries in this regard. I think the success of his tour can be seen from the fact that countries have pledged their money in showing their confidence in India. I mentioned the UAE, but both Sweden, the Netherlands and Norway have all looked at how they can increase economic cooperation with India, increase trade with India and look at how they can enhance their economic presence in India," he said.
Shringla described the prevailing economic market as deeply cautious, making India's ability to pull in foreign capital all the more significant. "I think that's important at a time when you say that capital is today very flighty. Investors are very, very cautious. There is a bearish sentiment. The market is not bullish; it's bearish. So there is a run of money, and at this time, attracting foreign direct investments is important," he explained.
Referring to the recent US Executive Nuclear Mission delegation, he highlighted that investors are betting heavily on India's decades-long growth trajectory and exploding power requirements.
"Yesterday, I was at this event in which a delegation of US nuclear energy manufacturers had come down. They are looking to invest in India. They are confident that over the next 10, 20, 30 years, India is going to look good. The demand for energy in India is only going to increase. So they are happy to invest in cutting-edge technologies in India.
He stressed that the Prime Minister's personal involvement heavily influences these countries' final investment choices.
"Whether it's the UAE, whether it is Northern Europe, countries are looking to India. And the message the Prime Minister carries, Prime Minister Modi personally carries, has a lot of weight with these countries in taking these decisions that they make," he said.
Speaking about the disruption brought in by the West Asia conflict, the former Foreign Secretary that the crisis was bound to have global repercussions given the Gulf region's strategic importance in energy security, trade and international connectivity.
"Well, whenever you have a crisis of this proportion, it is bound to have an impact not just in the region that it emanates from but across the world. And the Gulf area is very important from the point of view of energy security, is very important from the point of view of trade, its strategic location," he said.
Shringla further highlighted India's deep economic and people-to-people ties with the Gulf region, noting that nearly nine million Indians live and work there while a significant portion of India's energy imports also come from the region.
— ANI
Reader Comments
As someone who works in international trade, I can say that India's attractiveness for FDI is real. The political stability and reform momentum under Modi have been noticed globally. However, we must also address local business concerns and ease of doing business.
FDI is important but not at the cost of our domestic industries. We need a balanced approach where foreign capital brings technology and jobs without harming our small businesses. PM Modi's personal touch in diplomacy is impressive though 🇮🇳
Interesting to see India positioning itself as a stable investment destination amid global uncertainties. The nuclear energy angle is particularly promising - India's energy needs are massive and clean energy FDI could be a game-changer.
The PM's global outreach is definitely working. But let's not forget that FDI numbers have actually been fluctuating. We need more concrete data on actual inflows vs. just pledges. Still, good to see global confidence in India's growth story.
The people-to-people ties with the Gulf are crucial. Nine million Indians abroad is a massive diaspora. Their remittances and cultural bridges are as important as any FDI. Good to see this connection being leveraged diplomatically.
Honestly, while the diplomatic efforts are commendable, we should focus more on reducing policy unpredictability
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.