1. Foreign investors don’t think PM Narendra Modi is just a ‘dream merchant’

Foreign investors don’t think PM Narendra Modi is just a ‘dream merchant’

Former prime minister Manmohan Singh must persuade the Congress party to support reform bills, instead of terming PM Modi a ‘dream merchant’.

By: | New Delhi | Updated: April 7, 2016 6:27 PM
fdi in india, Narendra Modi, Narendra Modi FDI, FDI policy, fdi in india, FDI in defence, fdi in retail, foreign direct investment This improvement in the sentiments under PM Narendra Modi government as compared to Manmohan Singh led UPA regime, is probably the reason why the impression that India is the ‘bright spot’ in the global economy, is gaining ground rapidly. (PTI)

ecommerce, ecommerce in india, ecommerce news, ecommerce in gujarat, ecommerce website, ecommerce business, ecommerce transactions, ecommerce deals, ecommerce transactions bill The pick-up in FDI inflows since the NDA government has taken over from the UPA, clearly shows that foreign investors are showing faith in Prime Minister Narendra Modi’s policies. Former prime minister Manmohan Singh must persuade the Congress party to support reform bills, instead of terming PM Modi a ‘dream merchant’.

At a poll rally in Assam yesterday, former prime minister Manmohan Singh called the current Prime Minister Narendra Modi a ‘dream merchant’, whose foreign trips, projected as great achievements, have yielded nothing. But, the foreign investors appear to be in complete disagreement with him.

While it is correct that major reforms like the Land Act amendment, labour law changes, and even the goods and services tax (GST) are still stuck, and the tax mess is still far from being cleared – the pick-up in foreign direct investment (FDI) since the NDA government has taken over, clearly indicates to a return of faith of the foreign investors in the Indian economy.

More significantly, this situation has emerged as a big support at a time when the trade deficit scenario is unlikely to get better in the near future, and there is significant downside risk to income from the remittances and services exports.

According to a Moody’s Investors Service report, net FDI inflows into India hit an all-time high in January 2016, at $3.0 billion, and the country’s “current account deficit is now more than covered by its FDI inflows”.

fdi in india, Narendra Modi, Narendra Modi FDI, FDI policy, fdi in india, FDI in defence, fdi in retail, foreign direct investment
In fact, the report points out that, “The basic balance (the sum of the current account balance and net FDI) returned to a surplus in 2015 after being in deficit from 2003 to end 2014. The rise in FDI points to stronger investor interest in India on the back of robust economic growth. Higher inflows also suggest that recent government policies, such as efforts to liberalize foreign investment limits in several sectors and the ‘Make in India’ initiative, are bearing fruit”.

Not only this, the global rating agency believes that ‘the development of industrial corridors, investment and manufacturing zones, and ‘smart cities’ will further bolster investment inflows’, and the share of the manufacturing sector in the GDP may rise to 25% by 2022, from the current 17%.
fdi in india, Narendra Modi, Narendra Modi FDI, FDI policy, fdi in india, FDI in defence, fdi in retail, foreign direct investment

This improvement in the sentiments as compared to the UPA regime, is probably the reason why the impression that India is the ‘bright spot’ in the global economy, is gaining ground rapidly.

So, instead of trying to project that the current government is failing everywhere, even though the statement was made at a political rally, Manmohan Singh would do well by trying to ensure that the Congress party continues its support to the passage of reform bills in Parliament, which it showed in the first half of the budget session by supporting the Real Estate Bill.

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  1. J
    johnson
    Apr 8, 2016 at 3:46 am
    Yes. Thanks to the foundation laid by Dr. MMS. What is the incremental new initiative by Mr. Modi? Smart Cities are more on paper than in reality.
    Reply
    1. R
      raghunathan r
      Apr 8, 2016 at 5:19 am
      Strong foundation for corruption and Single family enrichment compromising MMS his own international retion
      Reply
      1. R
        RC
        Apr 8, 2016 at 4:35 am
        :))...tens years for laying foundations? Or, is it that he reaped benefits of momentum generated by policies and investments under ABV govt....NHAI, ports, telecom, electricity reforms....As his govt. did nothing new to continue the momentum rather it indulged in all sorts of corruption - 2G, Coal mines, banking etc. - in its years in office, it lost...anyway...
        Reply
        1. R
          RC
          Apr 8, 2016 at 4:30 am
          Slow but steady developments...
          Reply
          1. S
            S
            Apr 7, 2016 at 2:03 pm
            how the nation wishes Santosh Tiwari had written to Narendra modi, jetley,advani and sushma swaraj when they opposed everything from GST, ADHAR, Bangla agreement, Nuclear agreement, FDI, Indo Pak talks/relations - Just imagine if all these facilities had come into effect in 2011-12 nation would have progressed much more and Growth. Why such Reports never saw the light of the day in UPA times-So much was the disruption that it gave an impression NATION HAD COME TO A STANDSTILL- but revised growth figures show that the growth was quite good even in 2011-2014, though it could have been much higher had the then opposition party not disrupted every aspect of life in india.
            Reply
            1. B
              Blimping
              Apr 8, 2016 at 9:02 am
              Facts speak louder than words. Happy to see FE write with facts! MMS most definitely had ideas but the ministers under him were licking their lips like fat cats during implementation,with thousands of crores disappearing..
              Reply
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