Opinion: Self-reliant India Mission to open doors for foreign investment, technology

NEW DELHI. All set to write a new world order, the COVID-19 pandemic has caused socio-economic disruptions across the globe forcing various nations to redraw their economic policies.

The issues like nose-diving GDP, widespread unemployment, and the collapse of the supply chain have moved many nations like India, Japan, South Korea and others to shift their emphasis from offshoring to reshoring.

Also known as onshoring or back-shoring, the rule in-the-making would entail a reversal of off-shoring process and reintroduction of domestic manufacturing to own country.

Indian Prime Minister’s recent call for becoming ‘vocal’ for promoting ‘local’ products and services under the Atmanirbhar Bharat Abhiyan (Self-reliant India Mission), has spurred positive vibes in domestic and overseas business circles.

The world, however, feels that the Self-reliant India Mission does not mean India closing its doors ay foreign investment and technology. India, actually eyes at making the “Make in India” initiative stronger by inviting foreign capital, and expertise.

Amending FDI policy, raising foreign investment upper limit in many sectors to increase FDI inflow, and opening sectors like defense for foreign investment are some of the positive indicators of India’s intent to open its economy for the world.

“I am encouraged by PM Narendra Modi’s self-reliance India mission, which is not closing doors and shutting down borders. It is more about Make in India. Because of the breakage of the supply chain, Korea also feels the same. It is about moving from formerly known offshoring to reshoring to own country, and taking u-turn of the factories to their own country. India also feels the same thing,” said Shin Bong-kil, Ambassador of South Korea in India during a video-conferencing organized recently with Indian youths.

“India feels that this the right time to go with industry reforms for strengthening the Make in India concept. This is a very good chance to invite foreign companies,” said the ambassador adding that Korea invested massively in China, but its companies Samsung and Hyundai had to depend on parts supply from China to make cars, smartphones.

The domestic and overseas corporate world has hailed India’s stand on Atmanirbhar Bharat Abhiyan and supported it on a positive note.

Countries like Japan and South Korea whose companies invested heavily in China, and set up the majority of their production units there are grossly affected due to disruption of the supply chain as the majority of parts for producing cars, smartphones and other products come from China.

In a communiqué to PM Modi, the N. Takahashi, one of the acting members of Japan Chamber of Commerce and Industry in India (JCCII) appreciated the Indian Central Government’s vision for the expansion of business in India and the vision of the developing infrastructure as the symbol of New India.

“My small observation about new Economic Policy post-COVID-19, as one of the non-immigrant corporate citizens staying in Delhi NCR, for the last 13 years, is as follows. The freedom of a basic economy is needed for each country’s safety and security. When I look at the activities of China towards Africa, South Asia, and East Asia, I feel that basic economic capability can be achieved by not depending on a specific country like China,” wrote N. Takahashi, who is also the managing executive officer (MEO) of a well-known Japanese auto-component manufacturing company in India.

Experts have cautioned that self-reliance should not be misunderstood as closing the economy for the outside world, as it was going to open new doors of opportunities for the global players in India.

“Atmanirbhar Bharat Abhiyan (or Self-reliant India Mission) seeks to encourage and push local and indigenous businesses and keep them afloat in these turbulent times. While the call taken by the Prime Minister channels the effort of the Government in the right direction, it should not be misconstrued as one which cuts out completely or shuts off collaborations and businesses with the world outside. In fact, it is only about empowering the progress of a developing nation like India, and in order for it to keep moving in this trajectory, keeping it self-motivating and fuelling itself through this endeavor,” said the eminent architect and urban planner Dikshu C Kukreja, Managing Principal, C P Kukreja Architects.

As the saying goes, the 21^st century belongs to Asia, countries like India, South Korea, and Japan are going to play a vital role in effecting the new world order.

“Another way for the same to happen is by fostering and strengthening business relationships with like-minded economies. Especially, since there seems to be a lot in common between India and Asian economies such as Japan, South Korea etc., in terms of their cultures and value systems, it is only a spur in building those relationships. For example, contribution and involvement of the Japanese technology have been crucial to the construction of transportation services like the metro, bullet trains, and in the manufacture of automobiles, etc. and one has found value through South Korean businesses’ expertise like information technology, innovation in gadget design, etc., and going forward it shall continue to happen. Even with this call for self-reliant economies, we would continue to avail close collaborative working relationships in manufacturing, trade, and services,” said Kukreja.

CP Kukreja Architects – a multidisciplinary architectural and engineering firm that has a close working relationship with its local associate office in Tokyo, which helps in bringing design and technology from both worlds together and sharing it to contribute towards a better-built environment.”

According to experts like Takahashi, India is on its way of effecting global reforms and opening up the economy for the global players by taking a series of steps towards that direction.

“During the last Parliament session, a historically significant decision was made to abolish Dividend Distribution Tax (DDT).  It has open doors for India for taking Official Development Assistant (ODA) and Technology Transfer from OECD in order to create basic economic capabilities in sectors like nuclear electricity, road, railways, and basic industrial infrastructure such as IC chip, etc. The direction of enhancing LOCAL in India is appreciated for its economic independence that might take support through ODA, Foreign Direct Investment (FDI), and Technology Transfer from OECD. It is the right time to realize the Indo-Pacific Ocean Strategy with India, US, and Japan, with enhanced Economic capability of India,” said Takahashi.

The industry is of the opinion that the next year is going to be very challenging for the Indian economy and the mantra for coming out of this situation successfully is to be vocal for promoting local products.

“Under the given global pandemic situation, where the world’s largest economies are facing an internal crisis related to both human and health, financial instability, unemployment, and loss of business are hovering. It is pertinent and absolutely correct for each country to first keep its own house in shape and only then will be able to provide assistance to others. India under the leadership of Prime Minister Narendra Modi is doing exactly the same,” said Manish Kumar, Partner, Business Process & Risk Advisory, ShineWing India.

He adds, “In order to kick start the economy, we need to support the local/indigenous industry and enhance their manufacturing or service delivery capabilities either through internal resources or through foreign investments/technology, also we need to make these companies or their products vocal for their sustainability, growth, job creation, economic upliftment, and growth. It is imperative that India supports foreign investment for the upliftment of the local industry and it is in the interest of foreign investors considering the abundance of human talent and resources available in India to avail this opportunity to manufacture goods for the consumption of worlds one of the largest populated countries.”

Also read: India can become a manufacturing hub, China no more attractive proposition: South Korea