Decision on supply chains to be based on trust: PM

NEW DELHI: In a veiled but firm message to China, Prime Minister Narendra Modi on Thursday said that the decision on global supply chains would not be based just on costs but also on trust and pledged that India stood for political stability, policy continuity and diversity.Modi, while delivering a special keynote address at US-ISPF US-India Summit 2020, highlighted India’s response to the pandemic and in that context called for diversification of supply chains.“This pandemic has also shown the world that the decision on developing global supply chains should be based not only on costs. They should also be based on trust. Along with affordability of geography, companies are now also looking for reliability and policy stability. India is the location which has all of these qualities,” the PM said.“As a result, India is also becoming one of the leading attractions for foreign investment. Be it America or the Gulf, be it Europe or Australia — the world believes in us. We have received over $20 billion of foreign investment flows during this year. Google, Amazon and Mubadala Investments have announced long-term plans for India.”Referring to his government’s delivery-oriented approach, Modi said: “You are looking at a young country with 65% of its population below 35 years. You are looking at an aspirational country that has decided to take the nation to new heights. This at a time when we mark 75 years of independence. You are looking at a country with political stability and policy continuity. You are looking at a country with commitment to democracy and diversity.” The PM further mentioned that ‘Aatmanirbhar Bharat’ was about “transforming India from being just a passive market to an active manufacturing hub at the heart of global value chains”.India offered a transparent and predictable tax regime, he said. “There are tax exemptions to ‘Sovereign Wealth Funds’ and ‘Pension Funds’ for Infrastructure investment. FDI into India rose by 20% in 2019. This when global FDI inflows fell by 1%. This shows the success of our FDI regime. All of the above steps will ensure a brighter and more prosperous tomorrow. They will also contribute to a stronger global economy."Referring to opportunities in the public and private sector, he said that recent sectors that have opened include coal, mining, railways, defence, space and atomic energy.You are looking at a young country with 65% of its population below 35 years. You are looking at an aspirational country... This at a time when we mark 75 years of independence. You are looking at a country with political stability and policy continuity. You are looking at a country with commitment to democracy and diversity.Along with affordability of geography, companies are now also looking for reliability and policy stability. India is the location which has all of these qualities... As a result, India is also becoming one of the leading attractions for foreign investment. Be it America or the Gulf, be it Europe or Australia — the world believes in us.

from Economic Times https://ift.tt/3jIR6nH