The right diplomatic moves and promises have been made but converting them into action is now crucial
India is currently in the global spotlight. While there are several factors that have contributed to this worldwide interest—ranging from the demographic dividend to the vast consumer base—it is evident that there is significant change in the business mood towards India.
Though contributory factors are many, one that stands out is the newly acquired collective interest in India’s leadership. After the Lok Sabha elections last year, and the mandate to the current government, there is a wind of energy that is palpable. I cannot recall another example in recent times where an Asian leader has enthralled the East and the West alike, but perhaps that is the very indicator of the change we seek in global perception.
In the early days, the government had some hope owing to falling inflation due to crashing global commodity prices. Analysts forecast negative inflation rates for the next few months too. Market and investor sentiment has remained high, pushing stock market indices to new peaks. Food prices have remained unchanged despite unseasonal rain, and petrol and diesel prices have fallen steeply ever since the NDA government came to power. The government has also succeeded in getting parliamentary approval for higher FDI in insurance and transparency in coal and mineral mining.
With the proposed 100 smart cities in the country, and Wi-Fi zones across major cities, the Cabinet has managed to win the hearts of the new tech-savvy generation while garnering much-needed international attention. The government has been making it amply clear that it views global business as an integral part of India’s march forward, a message that Indian leaders have, in recent years, been reluctant to articulate. These steps will help achieve the objective of creating a stable economic environment that inspires confidence at home and also abroad. Also, the movement towards becoming ‘Digital India’ is not an ambition but the need of the nation, especially from the point of view of inclusivity.
The last one year has also seen a series of diplomatic engagements and gestures, which went beyond the customary visit and conversations and had a sharp business focus.
It is also progressive when the prime minister does not talk only macro but also looks into the specifics of the micro, whether it is the Swachh Bharat campaign or the Beti Bachao Beti Padhao campaign.
(This story appears in the 29 May, 2015 issue of Forbes India. To visit our Archives, click here.)