Calling All Investment

Context: A renewed focus on investment would be the perfect complement to the call for Atmanirbhar Bharat.

The rationale for Increasing Focus on Investments

• A necessary condition for achieving and sustaining the goal of self-reliant India.
• Investment can accelerate the growth of government revenue or job creation 
• Limits of Agriculture: Although the agriculture sector has been responsible for the revival of the rural economy, it is insufficient for sustained growth.
• Agriculture only contributes to 14% of the gross domestic product
• For double-digit growth, investment needs to touch 40% of Gross Domestic Product (GDP). 
• India’s high growth years had crossed investment of 36% but it has declined since. 

Features of  Invest India Initiative – a case for increasing investments.

• Structure: A joint venture between the apex industry and government for reducing bureaucratic hurdle. Former holds 51% of the shareholding, while the latter holds the chairmanship.
• Purpose: to serve the private sector.

• Advantage: it can help investors negotiate the complexities of the system. 

• Challenge: It doesn’t have the power to draft policies, amend rules or grant clearances. 

Way Froward: Nudging the economy to pro-investment mode: 

• The additional mandate of Chief Investment Officer (CIO): for leaders of all economic ministries.

• Similarly, the secretaries of crucial departments like commerce, telecom, road and power should have an additional designation of CIO.

• The investment must be a subject for all economic ministries, and not just restricted to the Department of Economic Affairs (DEA) and Department of Promotion of Industry and Internal Trade (DPIIT).

Conclusion: Attract, incentivise and maximise production and output by both domestic and foreign investors for sustaining investment regime of  India.