Government reforms in India target growth in manufacturing sector (Part 6 of 6)
From abcd to road
A one-day national workshop on stimulating investment for the Make in India initiative was held on December 29, 2014. The event showcased a number of steps that the government of India has undertaken in the past seven months to create an investor-friendly climate in the country. The government also committed to additional measures that should encourage investors interested in doing business in India.
During the event, Indian Prime Minister Narendra Modi spoke about his wish to change government culture from abcd—”avoid, bypass, confuse, delay”—to align with the road to success—”responsibility, ownership, accountability, discipline.”
With this change in mind, Modi said he’d like to see a more informal structure in government departments—one that does away with certain communication protocols between departments that he says delay decision-making. To bring this about, the government is adding a new dimension to the PPP (public private partnership) model, and involving all stakeholders in the decision-making process.
Can Brand India drive more investment in the country?
Modi also highlighted the need for “maximum movement” of the five M’s—men, money, machinery, materials, and minerals, across the country. Greater movement would help the manufacturing sector in India, and act as a catalyst in creating a globally recognized “Brand India.” Creating a globally recognized brand would also require Indian manufacturing to adhere to Modi’s “zero defect, zero effect” policy. For more on this policy, read the series, Why the Make in India campaign is key to manufacturing.
The Prime Minister called for balanced growth across India, emphasizing the need to ensure that the resource-rich eastern part of India should be developed on par with the western part of the country.
The WisdomTree India Earnings Fund (EPI), the PowerShares India Portfolio (PIN), and the iShares MSCI India ETF (INDA) invest in Indian equities. The positive performance of these ETFs in the recent past reflects India’s growth potential. Certain emerging market ETFs such as the iShares MSCI Emerging Markets Index Fund (EEM) and the Vanguard FTSE Emerging Markets ETF (VWO) are also invested up to 7% and 11%, respectively, in Indian equities.
For more reasons to invest in India, read What India can offer your long-term investment portfolio.
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