In the recent time the World as whole has realized the ill effects of keeping all its manufacturing facilities in one basket i.e. in China. The present situation is the culmination of the historic blunders committed by the World’s top corporates in the last 40 years concentrating all their manufacturing facilities in China completely ignoring one of the top business principles–“Do not keep all the eggs in one basket”.
COVID- 19 pandemic has loudly reminded the above principle. The entire World has deftly listened, quietly absorbed, and is very proactively working to undo their past mistakes. The top MNCs have started looking to relocate their manufacturing facilities to other conducive locations depending upon their industry & business model and their locational factors, type of workforce & logistic requirements.
India with abundance of minerals, metals & other raw materials; large work force for execution, administration & management; large market for consumption; democratic set-up & political stability; efficient logistics through all the three (Sea, Air & Road) modes of transportation, long coastal-line etc. has emerged as the leading manufacturing destination for the MNCs.
The business environment in India has significantly improved during the last six years particularly through its two special drives “Make in India” and “Ease of doing Business in India”. The Govt. of India (GOI) and State Govts. have amended laws and policies to regulate and support industries in their jurisdiction. Both GOI and State Govts. have designed their incentive schemes to promote manufacturing units, services companies, start-ups, higher value addition units and export from India. Both are rolling out the red carpet to their shores to welcome investors and are proactively resolving their issues. The Central & State Departments are playing significant roles in improving the business environment by dissemination of information, formulation of investor-friendly policies, benefit packages, management of single window portals, and thus grounding of investments.
To win the confidence of the investors and to give them a conducive busines climate and high probability of success in their business ventures, GOI & State Govts. have given various benefits under income Tax and agreeing for reforms under Labor Laws. To further strengthen the MSME segment for the strong supportive role to the large corporates, both GOI and state Govts. are providing incentives viz. Capital Subsidy, Interest Subsidy, Stamp Duty Concessions, State GST refunds, employment subsidy etc.
With these pointed & positive efforts of GOI & State Govts., The business environment of the country has dramatically changed in the last 6 years. India is now 63rd rank in the “Doing of Business” world ranking of World Bank from 77th rank a year back in 2018 and 142nd rank in 2014.
India & Indian economy has large no of inherent advantages which none another country/ economy collectively have. India has Sea Potentials to become a Perfect Manufacturing Hub and Dependable Investment Destination. India is blessed with many ingredients which are most conducive for the healthy business growth. The most important factors that make India a investment destination of choice for multi-nationals are:
Fully recognizing the potentials in India, MNCs & foreign investors have chosen India as their next investment destination. During the last five years FDI inflow to India is over half of the FDI received since the post liberalization era of the early 90s propelling India to Top 3 greenfield FDI destinations. The Foreign Reserves have crossed the mark of USD 500 Billion for the first time. These investments came in diverse sectors ranging from highly sophisticated areas such as R&D centers and development centers for engineering, consumer internet, biotechnology & pharmaceutical and to resource-intensive industries such as food processing, chemicals and petrochemicals. India also attracted large scale investments in labor- intensive manufacturing process of electronics assembly, textiles, and footwear industries.
The confidence of MNCs & foreign investor in India & Indian economy will promote India as their future destiny for their manufacturing facilities, R&D centers, development centers, Services hubs etc. GOI & State Govts. are putting all energy in the right & positive direction which needs to make India as the first choice of MNCs & foreign Investors for their future ventures & Investments. It should be further reinforced in view the requirements & aspirations of MNCs & foreign investors for setting up, relocating, expanding or diversifying their base to India and should be broadly in synchronization with the diversified Indian culture and needs & aspirations of Indians particularly at lower & middle strata. We, The Indians, are confident to make India as the first choice of MNCs/ Foreign Investors for any of their future venture.
And India would then be able to upheld its core culture summarized in a Sanskrit version,