Gujarat "leads" in FDI investment, India replaces China as top destination due to privatization, labour reforms

By Our Representative
Gujarat has “topped” the list of 10 most sought-after destination states for foreign direct investment (FDI) in 2015 in a comparison drawn between India and China by a new report by the Financial Times Group's thinktank FDI Intelligence. The report says, Gujarat "attracted $12.4bn and claimed 10% of all capital investment into both countries."
"In 2011, Gujarat was ranked the 14th most popular state for FDI within the two countries", the report says, adding, "Maharashtra in western India has been one of the strongest performers across the years and it has continued to close the gap on the top Chinese destination, Shanghai Municipality, with the locations attracting $8.3bn and $10.6bn, respectively, in 2015."
However, the report, titled "The FDI Report 2016: Global greenfield investment trends" does not say how much of the "committed" investment has actually fructified. In fact, a separate FDI Insight analysis does not mention Ahmedabad, Gujarat's business capital, or any other city of the state, among top ten FDI job creating cities in the Asia-Pacific region.
It says, with 15,000 jobs, Vietnam’s Ho Chi Minh City was "the regional leader in job creation over July 1 to December 31, 2015", adding, "Not far behind was the southern Indian city of Bangalore, which came second as a destination for FDI jobs, with 14,223 created over the same period."

"Singapore came third as a FDI destination for jobs, with 11,042. Noida, in the Indian state of Uttar Pradesh, came in fourth with 9,922 and Shanghai took fifth place with 8674", says the report.
The "sensational" revelation on Gujarat comes admidst "The FDI Report 2016" claiming that “India replaced China as leading recipient of capital investment in Asia-Pacific with announced FDI of $63bn". It adds, "China suffered a 16% drop in FDI projects." India, on the other hand, experienced an “8% increase in project numbers.”
Praising Prime Minister Narendra Modi for making India and Gujarat No 1 destination, the report says, the factors which led to this included pushing into the backdrop such factors like "lack of progressive FDI reforms, retrospective taxation, excessive permit requisites, centre-state political stalemates, inflexible labour markets, land acquisition issues and inadequate infrastructure hindered large-scale FDI into India prior to 2013."
Praising Modi his "campaign" for attracting FDI, the report underlines, it "garnered global attention as he has encouraged foreign investors to privatise key sectors such as the railways, defence manufacturing and insurance, as well as the liberalisation of medical devices." It adds, all this has helped in "ease of creating business."
The report says, "FDI flows into India increased from $24bn in 2013 to $59bn in 2015. The floodgates had been opened. India’s dramatic ascension in the global FDI rankings has largely been due to a dynamic Modi-led government focusing on ‘big bang’ FDI and labour law reforms."

It adds, "Relative stability within the government coupled with an effort to reduce the stagnating effects of bureaucracy has given foreign investors, across many industries, confidence in India as a remunerative investment opportunity. India announced itself as a global force in the FDI sector as it broke into the top 10 economies in terms of incoming FDI flows in 2014."
It praises what it calls "Modi’s marquee visit to New York in late 2015 saw a plethora of US-based CEOs of Fortune 500 companies such as Google, Ford, Cisco, IBM, Lockheed, Marriott, Starwood, MasterCard, Merck, Pepsi, DuPont, Dow and EY hosting the prime minister and citing plans to expand in India. This event turned out to be a causative indicator for 2015 as India moved up to number six in the world for FDI flows in 2015."

Comments

US govt funding 'dubious PR firm' to discredit anti-GM, anti-pesticide activists?

By Our Representative The Alliance for Sustainable & Holistic Agriculture (ASHA) has vocally condemned the financial support provided by the US Government to what it calls questionable public relations firms aimed at undermining the efforts of activists opposed to pesticides and genetically modified organisms (GMOs) in India.

Modi govt distancing from Adanis? MoEFCC 'defers' 1500 MW project in Western Ghats

By Rajiv Shah Is the Narendra Modi government, in its third but what would appear to be a weaker avatar, seeking to show that it would keep a distance, albeit temporarily, from its most favorite business house, the Adanis? It would seem so if the latest move of the Ministry of Environment, Forests and Climate Change (MoEFCC) latest to "defer" the Adani Energy’s application for 1500 MW Warasgaon-Warangi Pump Storage Project is any indication.

Bayer's business model: 'Monopoly control over chemicals, seeds'

By Bharat Dogra* The Corporate Europe Observatory (CEO) has rendered a great public service by very recently publishing a report titled ‘Bayer’s Toxic Trails’ which reveals how the German agrochemical giant Bayer has been lobbying hard to promote glyphosate and GMOs, or trying to “capture public policy to pursue its private interests.” This report, written by Joao Camargo and Hans Van Scharen, follows Bayer’s toxic trail as “it maintains monopolistic control of the seed and pesticides markets, fights off regulatory challenges to its toxic products, tries to limit legal liability, and exercises political influence.”

Fostered by those in power, hatred 'hasn't been' part of Indian narrative

By Osman Sher* It is strikingly ironic that the current climate of prevalent hate in India is fostered not by a disruptive fringe of society, but by those in power—individuals entrusted by the citizens to promote their welfare and foster peace and harmony. It is their responsibility to guide and nurture the populace as if they were their flock.

Muslims 'reject' religious polarisation of Jamaat-e-Islami: Marxist victory in Kulgam, Kashmir

By Bhabani Shankar Nayak* In the international sphere, an orgy of imperialist violence and wars on multiple fronts is unleashed on the world's population to divide people on religious and nationalist lines, destabilise peace, deepen crises, and control resources in the name of nationalism and religion. Under the guise of fighting Islamic terrorism and exporting the so-called market-led Western democracy, imperialist powers are ghettoising Muslims to control natural resources in various parts of Asia, as well as in Arab and Middle Eastern countries.

Militants, with ten times number of arms compared to those in J&K, 'roaming freely' in Manipur

By Sandeep Pandey* The violence which shows no sign of abating in the ongoing Meitei-Kuki conflict in Manipur is a matter of concern. The alienation of the two communities and hatred generated for each other is unprecedented. The Meiteis cannot leave Manipur by road because the next district North on the way to Kohima in Nagaland is Kangpokpi, a Kuki dominated area where the young Kuki men and women are guarding the district borders and would not let any Meitei pass through the national highway.

Can voting truly resolve the Kashmir issue? Past experience suggests optimism may be misplaced

By Raqif Makhdoomi* In the politically charged atmosphere of Jammu and Kashmir, election slogans resonated deeply: "Jail Ka Badla, Vote Sa" (Jail’s Revenge, Vote) and "Article 370 Ka Badla, Vote Sa" (Article 370’s Revenge, Vote). These catchphrases dominated the assembly election campaigns, particularly across Kashmir.

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

NITI Aayog’s pandemic preparedness report learns 'all the wrong lessons' from Covid-19 response

Counterview Desk The Universal Health Organisation (UHO), a forum seeking to offer "impartial, truthful, unbiased and relevant information on health" so as to ensure that every citizen makes informed choices pertaining to health, has said that the NITI Aayog’s Report on Future Pandemic Preparedness , though labelled as prepared by an “expert” group, "falls flat" for "even a layperson".

Search This Blog