Covid-19 has brought inexplicable changes on every possible front across the globe. This pandemic brought everything to a standstill, but now establishment in every corner of the world are in pursuit of a successful revival, with the only desire of getting back on its feet.
In this process, mere choice and need are not enough to get what is desired. With the changes in the global scenario, the priorities of all the countries have changed too, along with the dynamics of their investments. However, at a time when even developed countries are struggling to get back on their feet in terms of their economy, India under the leadership of Prime Minister Narendra Modi is continuing to witness an optimistic upwards trend in the calculations of economic progress.
Despite reservations about economic revival, the people of this nation had collectively and completely supported the lockdown. In the initial phase of the lockdown, they were on the same page as the government, which prioritized the health of the citizens over the economy.
What then came as a relief to citizens and industrialists were the packages announced by the Prime Minister under the Aatmanirbhar Bharat Abhiyaan. These developments helped create a positive perception about the government which in a way managed to do well both on the economic as well as the health fronts.
While the initiatives of the government were appreciated domestically, they were also closely observed internationally. The manner in which India handled the Covid situation, at the same time initiating policies for economic revival, has been perceived as a successful model of governance by Prime Minister Narendra Modi and is being appreciated across the globe. This has helped India enhance its reputation for goodwill at the international level.
Ever since Narendra Modi took charge as the Prime Minister, he has been keenly focusing on projecting internal strengths, such as positive economic growth, a robust domestic demand, a young workforce, economic and social reforms and, most importantly, a stable and dynamic government, to attract foreign investments. If the overview of this positive approach of global investors towards India is to be analysed, a consistent 7%-plus economic growth along with the needed improvisations of the nation’s macro fundamentals has made India a preferred choice for FDI. Besides, the ambitious economic reforms brought in by the Modi government have ensured that foreign investors view India as a destination for long term investment.
With changes in the global trend of investments due to Covid-19, India verily enjoys a brighter spot vis-à-vis China. The International Monetary Fund (IMF) projected an impressive 12.5% growth rate for India in 2021, which is stronger than that of China. This also makes India the only major economy to have a positive double digit growth rate last year during the pandemic. Similarly, Moodys, World Bank and the Reserve Bank of India have also revised their estimates and projected impressive growth.
At a stage where the pandemic is yet to be defeated and cases are accelerating around the world, India stands tall amongst 16 global economies in comparison. India, with a multitude of opportunities and potential, has over the last few years developed tremendous goodwill among the global economic powers as well as with neighbouring countries. In comparison, with its aggressive and dominating policies, China is gradually losing the influence it had in the recent past. Simultaneously, an international union of inclusive economies is forming, which will lead inevitably to further isolation of China.
The Quad, a four-nation alliance of India, Australia, the US and Japan, that was established in 2007, has maintained a low profile for a very long time. However, the exhibition of increasing bonhomie among the four nations has most certainly irked Beijing and challenged its ambitions. This Quad’s advocacy of “free and fair” Indo-Pacific trade is nothing but a clear signal cautioning China. In the world of free trade, assertion and dominance like China’s is most uncalled for. However, the protagonists can only be those whose foundations happen to be inclusive like, in this case, India.
At a time when global growth is expected to moderate to 3.3% over the medium term, India’s growth projection is an assurance to its people and industrial sector that Prime Minister Narendra Modi’s target of achieving a $5 trillion economy is going to be a reality soon. While this looks ambitious, Narendra Modi has proved that with proper planning and execution, nothing is unachievable. And the IMF’s projection of economic growth echoes the same possibility.
With India’s image of inclusivity along with a well thought out plan and encouraging ease of doing business, the Modi government has ensured that we will soon be one of the most powerful economies in the world. We have now successfully painted an image of ourselves as a peace-loving business-friendly country with a plethora of opportunities, essentially owing to our exponential market potential along with a young workforce. Our relaxations in FDI along with our evolving technological and innovation capabilities only compliment our welcoming and accepting nature.
The pandemic has created an anti-China sentiment across the globe. There was a time when China’s foothold in the manufacturing sector in India appeared undisputed. However, the change in this is now evident with India emerging as a better alternative, by choice and not compulsion. Many conglomerates, particularly from China, have moved their manufacturing operations from China to India in the recent past.
This has been possible precisely because the nation, under the efficiency and wisdom of Prime Minister Narendra Modi, believes in democratic leadership and not dictatorship in terms of economic operations. Propelled by the economic reforms in 1991, the Modi government has only strengthened its roots through various financial, socio-economic and agricultural reforms.
India as a country has never believed in the policy of expansionism like China. Instead we have always believed in “Vasudhaiva Kutumbakam”, and Prime Minister Narendra Modi’s policies are a reflection of the same.
On the basis of such strong indicators of a robust economy and its colossal opportunities, the world has verily given a big thumbs-up for Modi’s soft power diplomacy.
The author is Media Head, BJP Maharashtra. The views expressed are personal.