World Economic Forum: The problem with PM Modi's 'come to India' invitation
Prime Minister Narendra Modi addressing the plenary session of the 48th World Economic Forum (WEF) at Davos in Switzerland was India’s moment on a global platform, but the country has a long way to go before seizing it.
A young businesswoman attending the Davos meet was enthused when she was invited along with the biggies on a pre-Davos discussion. The idea was to discuss how the business community should present India at the global meet with heads of state and business leaders from across the world.
While the Davos regulars discussed "talking up" India, the first-timer wanted the space for more authentic conversations because the fact at home is that even as Prime Minister Modi has spoken about replacing red tape with red carpet, doing business in India continues to be incredibly difficult.
She came back from the pre-Davos discussion rather disillusioned because it sounded a lot like "more of the same". She was perhaps echoing the sentiment of many Indians who had voted for PM Modi in the hope of seeing sweeping changes, but seem to be caught up in a situation of "more of the same".
Modi addressing the plenary at a World Economic Forum global business meet is a matter of great pride and honour for India. From being an inconsequential player to a force du jour - it has been a long journey and India has gone about it with abundant grace.
The same plenary was addressed by Chinese premier XI Jinping last year. Any comparisons between India and China seem futile because India has grown while retaining its founding principles.
It remains a thriving democracy even as it is poised to take over China’s tag of the fastest-growing economy by next year. What’s working for India is its teeming young workforce, a demographic bonanza for businesses around the world - as much of the world grapples with an ageing population, India shines like a bright star with untapped opportunities and potential and hence the stupendous growth rates in a world which is growing between two and three per cent.
But let’s also not forget that the sobering growth rates across the world are built on a fairly high base rate while India’s base continues to be low. India has about another decade to capitalise on its gains of a young population and it has a long to-do list to be able to do that.
While PM Modi warned against protectionism and climate change, and announced it to the world that India is open for business, the reality at home seems to be a bit disconnected with his vision. Ease of doing business is not quite a reality, the implementation of Goods and Services Tax has added to the compliance burden of businesses, petty corruption continues to thrive and worse is that decision-making at the bureaucratic level continues to be cumbersome and painful. Investors say that they find funding startups in India very difficult and prefer companies based out of Singapore and Hong Kong.
From a macro economic perspective, India has fixed its wobbly fundamentals that it inherited, but across all sectors - traders, farmers, small businesses - the pain is real. Beyond that, even as Modi invites the world to India, he must be mindful of the uncertain law and order situation in the country he represents.
Hours before he spoke to the world, India’s Millennium City, Gurgaon, reported yet another rape, and the Karni Sena called for a "janata curfew" to protest against a film on a character whose existence is under question.