India is one of the fastest growing major economies in the world, has the largest young workforce, most densely populated country (and the largest consumer market).
BUT is it sufficient?
As, on the other side:
1. We are still lacking the basic infrastructure to support large scale manufacturing. As we are still largely dependent on our service sector and primary sector, and have over the years grown in these two primarily ,leaving our manufacturing capabilites underdeveloped ?
2. Is our young huge workforce "skilled" also?
3. Do we have simple Economic, Labour & Corporate laws in place to permit easy entry, exit & working of the firms/corporate?
4. Are our Income tax laws favourable for foreign countries for setting up manufacturing facilities in India?
5. Do we have proper transportation network for movement of goods within india and for export outside india? Like: Dedicated freight corridors, Developed Ports, ICDs (Inland Container Depots) etc.
6. Are our export clearances easy & whether our FTP(Foreign Trade Policy) is really making impact for increasing exports?
@P.A Well if what you have asked happens then our country will be boosting with economic growth and prosperity and probably the problem of unemployment will also be solved to some extent.
To start with point 1 , even in our country their were a few plans made by leading architecture houses of building those temporary hospitals and they could also pull it off but then they changed/ converted the worli sports complex into one with beds , so we have the power and talent in repsect to it but do need some support with skilled workforce.
Now entry of new firms might just happen with tweaking of the FDI policies but already that has been an issue on several accounts due to the security measures and behind the scene attacks on our companies( IT related hacking issues).
Two important factors which i feel will be of utmost importance are 1. population and 2 Green cover.
With already an expanding population, entry of new firms will add on to our existing population problem and new infrastructure will deplete the already minimal resources which we have given the fact that we are going to run short of groundwater in some major places in the next few years, The green area in our country is drastically reducing due to various mining , extraction and manufacturing and industrial activities , so it will be a huge challenge for India in being THE NEW MARKET for the foreign companies in China looking for a new place.
@Tuhin12 nice point of view. i think shifting to contemporary energy sources is the answer to this problem... but kudos to you, finlaly someone speaking for the environment
@ravikumar just a simple reason buddy , if the trees won't be their then even artifical intelligence won't help, somehow it was not happening but now due to the virus at least some are getting the clean air to breathe.
@P.A what has been missed here is the point that environment is also important...if there is an environment of unstability around, there are riots, discontent, hatred etc, all these will create a bad impression and this will deter those investors from spendiing their dollars and bitcoins here. Investors need security and in ensuring them security, a healthy environment is must.
apart from Riots and fightings, general discontent risen from unemployment, poverty, corruption and lack of facilities (education and healthcare) has to be looked after too. The gov cannot keep fooling people every next year citing 15 lakhs in account, then superpower, then black money, then pakistan, 5 trillion economy and then what follows next...maybe equalling China?...the gov has to realise that ultimately people will not eat from a statue and earn money from temples...the discontent is already there...plus BJP and media's propaganda has added hatred to it...now if the general populace finally lose trust on Modi...Chaos will be waiting...
History speaks of too many such accounts, when limits are exceeded (which this pandemic may add fuel to) chaos ensues, revolts happen which shake the government's edifice...
This discontent has to be alleviated first and foremost...
@jayeshdhyani discontent will never be alleviated. tell me any nation in the world in which everyone is happy with its government..
This is where democracy kicks in. A govt is elected through the voice of the majority, and works towards the welfare of all (majority and minority)
You can criticize the govt all you want, but dont forget that IT IS AN ELECTED GOVERNMENT...
"all these will create a bad impression and this will deter those investors from spendiing their dollars and bitcoins here" - I think we are doing very well in that regard...india is one the most favoured nation for foreign investment...possibly in top 3 if i am not wrong.
"plus BJP and media's propaganda has added hatred to it... " - do you really think BJP is the only party that is running a propaganda through media ?
@ravikumar yes all of them run propaganda...but what happens when government does so?
For elected government...i scoff at it...seriously the Indians proved Socrates right that "not all the people should be allowed to vote"
By the way in "i guess 2 or 3"...its 63...i must say tgat it has improved...but i dont see any improvement...its manifestation is still what I am searching for...Mr Modi has been spending billions on defence rather than Education and healthcare...i dont know how that brings business to this country...a country preparing for war is not the place you go and put your upon ...
@P.A India is undoubtedly the place where foreign companies can think of investing. But the major hurdle is the discord between the states and central government. The harrowing companies are pulling out themselves from China but only few are wondering to invest in india and the rest are moving to Vietnam, Japan, Indonesia.
At this particular time, every company wants to start their operations as soon as possible as the pandemic is over but we all know that in India, the stringent rules would not alow anyone to kick start easily. The issues are as follows-
2. Red Tapism
3. Legal Procedures
4. Territory issues
5. Fidelity among the governments
6. A local aid is necessary
7. Corruption free
8. Tax Regime ( India is already a country that has the most complicated tax regime )
9. Intellectual Property rights
As compared to India, other countries have less complications and they are ready to aid the companies in kick starting their businesses at the earliest, whereas in India, it will take atleast 2-3 months to initiate the procedures. That is why most companis are favouring other cou tries with less complications.Challenges foreign companies face while investing in India
@P.A In the wake of Covid-19, India has got this rare opportunity to be the manufacturing hub of the world, but as you correctly pointed out in your other comments, it is matter of mauke per chauka maarna. And to be honest, I think presently we are not ready to take that step further, considering the fight against coronavirus to secure the health of the public is our topmost priority right now, and that is doing no good for our economy.
It is a long term game to take the reins from China, despite the fact that companies are moving out of there. I think it has started from 2014 when Modi came to power and started introducing reforms/laws into various sectors, but introducing reforms is one thing, and implementing them (& reaping the benefits from them) is another.
Connectivity wise, as @Amaneesh Seth said, Nitin Gadkari is doing a splendid job to connect various parts of India through investing heavily in strengthening the road networks. Railways are getting modernised with the introduction of trains like Gaatiman. Our first bullet train network is getting developed. There has been a tremendous effort to better the maritime ports networks. Inland waterways system is in the making with Jal Marg Vikas Project. These projects need to be worked hard on.
Talking about trade, foreign trade policy, tax laws, I think we should focus more on RCEP FTA (Regional Comprehensive Economic Partnership), and do something to sign it asap. Most of the things we do in that regard are criticised by our competitors in WTO. We should focus more regional partnership and development right now with initiatives like BIMSTEC. Our Act East policy needs a major boost. Together RCEP, BIMSTEC, and a strong Act East Polict can counter China's growing econmic presence and can assist India in bulding a stronger footprint in South East Asia.
Focus should also be on the domestic economy. We need to find a way to increase agreegate demand in the market. I think a rejig of the Finance Ministry is needed and Modi will do it after some normalcy will happen post Covid crisis.
@prateekchopra well explained🖒
Prateek in addition, we as indians have to also take up this responsibility & work more hard towards nation development..even small small steps will contribute in a large manner collectively..b it paying our taxes honestly, donating, inculcating swachh bharat habits, investing in domestic mutual funds/stocks/banks to finance domestic companies, adhering to laws, and most importantly supporting every elected govt. in its decisions rather than just protesting or blocking the roads or rioting on every decision and diverging the nation's mind from development to politics & chaos.(by creating hindrance in important projects)
I feel that implentation has to be the biggest challenge , what our prime minister said when he came to power in 2014 will be crucial. Starting from Skill India to Make In India , the road map is ready I think but getting things done has been an issue in the past . Now the points which you have highlighted are the pain points for this process overall
1. Skill India was a good scheme but this has to be incorporated in education curriculum to make it a huge success. (something mandatory)
2. Nitin Gadkari and his ministry has succeeded in increasing the daily construction range of highways.
I also feel that Railway has the potential to deliver a speedy logistical network which they have achieved during covid crisis.
Overall the journey will be tough but I think we wI'll reach our target .
@P.A infrastructure can be built, laws can be reformed, policies can improvised and indeed we are big market but the concern is our 'empolyability'. this is the thing that takes time to develop along with infrastructure. we severly lack this employability factor and that makes this huge young population rather a liability.
@email@example.com exactly, but we can't expect the companies to wait till this gap is filled..present oppurtunity is a very rare one (due to Chinese virus).. We have to quickly fill this void created due to co.s moving out of china, otherwise other countries like vietnam, mexico, bangladesh etc might absorb this opportunity..
@P.A totally agreed and I think we have to be more prepared in future to fight such novel diseases . Chinese authorities were not quick in the initial days due to which things got bad .
@P.A call it Covid19 or novel coronavirus, what you said sounds racist.
@firstname.lastname@example.org hey, so according to its definition racism is thinking that your race is superior...or it means that one is discriminating a person of any other race just due to their race...pls enlighten me how calling coronavirus a chinese virus is doing any of the above.