The outcome of a historic general election has rekindled international interest and restored global confidence in India. At a time of uncertainty and turbulence in the world, the new government in India, led by Prime Minister Narendra Modi, is seen as a positive development. There is unprecedented optimism about India’s rapid progress under Modi’s leadership.
India’s economic progress with strong economic fundamentals is not only a key factor in global economic stability, but a source of immense economic opportunity for the United States, notably the Southeast. India’s government is committed to removing bottlenecks to improve the investment climate, make it easier to do business, and develop India as a manufacturing hub. To give global recognition to the economy, Modi launched the “Make in India” initiative, urging investors to look towards India as not merely a market, but an opportunity for partnership.
"Make in India"(www.makeinindia.com) is the government's commitment, an invitation to all and a blueprint to turn the country into a global manufacturing hub. With a largely young and mostly educated population, India provides a skilled workforce available for hire at a competitive price.
As the nation’s manufacturing infrastructure and capacity for innovation is poised for phenomenal growth, new smart cities and industrial clusters are being developed in industrial corridors with connectivity. New youth-focused programs and institutions are dedicated to developing specialized skills. Infrastructure projects such as i-ways besides highways, port-led development, optical fiber networks, gas grids and water grids are getting a major push.
Shares of Indian stocks rose to record highs as the Sensex index gained 35 percent in late 2014, making it one of the top performers in the world.
The Wall Street Journal recently reported investors around the world were giving Modi rock star treatment as money managers poured $16.5 billion into Indian stocks. The International Monetary Fund predicted the country’s GDP growth would go from 5.6 percent in 2014 to 6.4 percent in 2015. U.S.-India trade has reached more than $100 billion, and the goal is to increase it to $500 billion in the next five years.
As an outcome of the very successful visit of Modi to the United States — the U.S.-India Business Council estimates an investment of $41 billion by American companies in next three years in light of the prime minister’s visit — U.S. companies will be leading partners in developing Allahabad, Ajmer and Vishakhapatnam as “smart cities.”
Last month, the United States was “partner country” at the Technology Summit, where South Carolina Gov. Nikki Haley was the keynote speaker; her 10-day visit to India sought strong business and trade ties. The U.S. also will be a partner country in the Vibrant Gujarat Business Conference, Jan. 11-13.
The Southeast, notably Atlanta with its many important companies, can easily find more opportunities in India. Infrastructure is a trillion-dollar opportunity there. Companies like Coca Cola have announced $5 billion investment in India, while Hindalco, an Indian company, acquired Novelis of Atlanta for $6 billion in 2007.
In response to growing business opportunities between the Southeastern U.S., India chose Atlanta to open its Consulate for the Southeast in October, 2012. Several Atlanta companies are already investing and doing significant business with India.
With the Modi government’s reforms, investors in the Southeast have a golden opportunity to come “Make in India” and invest in the global powerhouse of tomorrow.
Ajit Kumar is consul general of India in Atlanta.
