various production-linked incentive (PLI) schemes to attract investments in clean and affordable energy. The exit from mobility restrictions and nearly universal vaccination coverage brought about by the release of pent-up demand during the pandemic have contributed to the growth of the services industry. India is rapidly positioning itself as an emerging manufacturing hub in global value chains, with a growing consumer market and a hub for ongoing digital transformation. India’s large and stable democracy and consistent reform measures, coupled with a growing domestic consumption base and a digital economy make India an optimistic destination for multinational enterprises. India‘s FDI intake has increased steadily over the past 10 years, reaching US$ 84.8 billion in 2021–22, despite the impact of the pandemic and geopolitical developments. According to estimates (CII- EY), India might bring in $475 billion in FDI over the course of the next five years. In the post-pandemic working world, there is an increased focus on Global Capability Centres (GCC). Worldwide, India remains the top go-to-destination for GCCs, providing the most favoured environment in terms of ease of hiring talent, cost of operations and geopolitical stability. Today, the GCC presence in India spans across sectors, including banking and financial services, healthcare, electronics, and energy. I would like to highlight three areas where India can work together with global businesses in the coming days. First, post-pandemic India has emerged as a reliable node of the global supply chain. Global businesses must consider incorporating India into their trade and investment strategies to diversify their sources of goods as well as access the Indian market. To accelerate this process, India has been in talks with several partner nations for economic agreements that will reduce tariffs and address non-tariff barriers, both for goods and services. According to estimates (CII- EY), India might bring in $475 billion in FDI over the course of the next five years. Two, the Indian industry is fully committed to meeting the national targets for Net Zero. We hope to garner partnerships and collaborations in areas like energy transition, sustainable mobility, climate finance and green bonds for green infrastructure. India is one of the few nations which is on pace to fulfil its nationally defined climate targets. It has established a national green hydrogen strategy, increased the share of renewable energy in the overall energy capacity, and accelerated the use of electric vehicles. Finally, India can partner with the world’s leading technologynations todrive industrytransformationthrough Industry 4.0 and beyond. Today, India is experiencing significant transformations driven by technology-led innovative solutions. Research & development, innovation and digitalization are a national priority of the future. We are deeply focused on building a robust ecosystem of research, innovation and technology within the country. India has transformed into a stable and rapidly growing economy with a strong foundation in governance, knowledge and innovation, and a hub of talent. We believe that there is no better time for strengthening our strategic economic engagementwith theworld for trade, investments, technology partnerships and new-age innovations. We look forward to partnering with the world for finding solutions to global challenges and developing a better shared future. • | 5 | Theworld is experiencing unprecedented disruptions as it grapples with the aftereffects of the pandemic and is mired by tumultuous geopolitical situations that are having a resounding impact across economies, especially developing economies. Global priorities have shifted towards geopolitical stability, resilient supply chains, sustainability issues and inclusive development. Building resilient economic systems is the need of the hour. As India celebrates its 75th year of Independence, it is at a juncture where it is experiencing strong economic growth despite the global headwinds. The current geopolitical scenario drives India to chart a way forward that is self-reliant with a focus on technology and innovation while developing deep strategic global partnerships and maintaining an emphasis on areas of growth and development for Indian industry and economy. The Indian economy is robust, considering the current situation of the world and is doing well with a projected growth rate of 6.1% per cent for 2023 as per IMF estimates. The positive prognosis for India’s economy is reflected in the nation’s strong position in international markets. Resurgent domestic demand, services, the digital economy, and infrastructure are driving forces for India’s rising development trajectory. Despite the ongoing global slowdown, India’s total exports (goods and services combined) increased to new peaks in 2021-22 at over US$ 1 trillion. India was the fifth-largest recipient of foreign direct investment. India ranked fortieth in the Global Innovation Index 2022, ranking first in innovation among lowermiddleincome group economies across the world. Accelerated The global economy is facing multiple challenges from climate change to geopolitical tensions. It’s time for an economic architecture that’s sustainable & inclusive Building resilient economic systems scientific and technical innovation is driving rapid economic progress throughout the country. India became the world’s largest information and communications technology services exporter. The current 2022-23 G20 Presidency of India offers a chance to strengthen its expanding foreign policy influence as well as a chance to forge new business relationships and investment prospects. The next phase of India’s journey, termed ‘Amritkaal’ or the era of progress, aims to be future-forward, technologically driven, environmentally and socially conscious and inclusive. The government has laid down a roadmap which has the potential to be transformative. The focus is on creating strong infrastructure frameworks, particularly in the areas of social, financial, and digital infrastructure. Over the past decade, India’s efforts have resulted in a significant transformation of its infrastructure and the PM GatiShakti programme for harmonized infrastructure construction will further synergize energy transmission, IT communication, bulk water and sewerage, and social infrastructure. The new National Logistics Policy is set to ring in ease of moving in the country, ensuring a speedier and seamless movement of cargo and people across modes of transport. It is expected to bring about a paradigm shift in multimodal transport and position India as a global trendsetter in the digital and paperless logistics ecosystem, while also creating new investment and growth opportunities in the sector. Commitment towards sustainable development is evident in India’s efforts in decarbonization through the introduction of structural and procedural reforms and Sanjiv Bajaj President, CII and Chairman & Managing Director, Bajaj Finserv Limited EXCLUSIVE ARTICLE | 4 |
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