As the Big Chill sets in across Europe and America, it seems symbolic of the state of the global economy as the world?s rich and powerful pack their thermals for the pilgrimage to Davos and the annual World Economic Forum (WEF) 2014, starting January 22. The theme of this year?s confab is ?The Reshaping of the World: Consequences for Society, Politics and Business?. It?s a bit of a mouthful and reshaping the world is a bigger challenge than climbing, unaided, to the top of Magic Mountain, the title of Thomas Mann?s celebrated book on Davos. WEF founder Klaus Schwab underlined the pre-Davos mood of uncertainty. As he pointed out, the world?s four largest economies are currently undergoing major transitions. The US is striving to boost growth in a fractured political environment. China is moving from a growth model based on investment and exports to one led by internal demand. Europe is struggling to preserve the integrity of its common currency, while resolving a multitude of complex institutional issues. And Japan is trying to combat two decades of deflation with aggressive and unconventional monetary policies. What that implies is a host of ?unknown unknowns?, to borrow Donald Rumsfeld?s famous remark.
Against that backdrop, how will India and its marketing efforts at Davos fare this year? Last year was a disaster, when India literally got the cold shoulder. After nearly a decade of being feted at the Swiss ski resort as an emerging economic powerhouse, 2013 was a steep slide downhill for a country that was just starting to enjoy all the attention and the adulation. It was what attracted the biggest names from India Inc, making India the second-largest country delegation after the Americans. As financial journalist and Davos regular Bill Bremmer wrote last January: ?After Incredible India, this year it might as well have been ?Invisible India?. The country isn?t doing well, with major corruption issues at home and a limited corporate presence abroad. The Indian delegation conducted some joint events with African attendees, and India came away outshined.?
When India gets upstaged by Africa, things must be really bad, image-wise. Is 2014 likely to see more of the same? The Indian contingent of business leaders will be there in full force; Davos is, after all, an opportunity to network and negotiate deals. The official delegation consists of heavy hitters in the economic sphere; finance minister P Chidambaram, commerce and industry minister Anand Sharma, urban development minister Kamal Nath, heavy industry minister Praful Patel, Planning Commission deputy chairman Montek Singh Ahluwalia and power minister Jyotiraditya Scindia. At the forum level, India?s presence is limited, with only one Indian, Kris Gopalakrishnan, vice-chairman of Infosys, co-chairing a session. However, the global debate has shifted significantly, from navigating through an extremely volatile environment towards managing a rather shaky recovery. The Prime Minister, addressing assembled NRIs last week, stated that India was ?re-emerging as an attractive investment destination?.
What is perhaps in India?s favour this time is the considerable interest generated with the prospect of Narendra Modi becoming the next prime minister this summer. It has caused quite a stir in global corporate and financial circles, not the least because of his pro-business image, and the widespread belief that he will make India a more investment-friendly market, were he to ascend to the top job. Modi?s Vibrant Gujarat Summit attracts global leaders and corporations like Shell, British Gas, General Motors, P&O ports and a host of others, while countries like Japan, Denmark and the UK have solid business connections or joint ventures in the state. India Inc is already enamoured of Modi, and his recent remarks on tax reforms will add to his global appeal since much of the downturn in the India story at Davos last year had to do with retrospective amendments of tax laws and a proposed clampdown on tax avoidance. The India growth story at Davos may yet be back, albeit with a twist.
To that end, CII is pulling out all the stops to make this year?s event a more India-friendly one. There?s an all-day India Investment programme at Hotel Europe on January 23 and a CII Indian reception at Hotel Morosani. In between, Bajaj Auto will host a Night Cap at Scaletta, the club in Hotel Belvedere, and there?s the traditional Bollywood Night at Cabana Club. Brand Equity Foundation will also be back with the Indian Adda, set up inside a popular cafe on the Promenade at Davos. As the name suggests, it?s a more informal setting for foreign political and business leaders, and media to drop in to chat over hot tea and samosas on issues to do with India.
India?s best brand ambassadors, are, ultimately, its business tycoons, many of whom have a vast network of global connections and partners. There are usually over a 100 of them who make the trek and they are very active in engaging with other delegates. Further, compared to the snail-like pace of decision-making for the last three years, the UPA government has woken up and taken a number of economic-related decisions in recent months, including on retrospective tax and tax avoidance rules, which should help arrest the deterioration of India?s image. Yet, it could be a case of too little too late. As one delegate put it last year, ?We are looking for credible India, not Incredible India.?
The writer is Group Editor, Special Projects & Features, The Indian Express