Although we are currently experiencing an era of global realignments, there is no doubt that the initiative remains on the Asian side. Only instead of China, which is slowing down, India is economically advancing strongly, a country that will surpass China next year (not only) in terms of population, and has just taken the fifth position on the global list of the strongest economies from the United Kingdom. Therefore, it is wise to invite the head of the state, but extremely useful agency Invest India, Deepak Bagla, to Lider’s most important conference, Day of Great Plans, with whom we discussed, among other things, India’s position in the global economy and the country’s potentials.
State institutions and agencies are rarely so efficient that they truly fulfill their task. The case of Invest India is obviously an exception that confirms the rule. What are the results eight years after its establishment?
As a government agency that promotes investments and facilitates their implementation in practice, Invest India is at the forefront when it comes to attracting global companies and their investments in the Indian market, providing free assistance to investors, from market entry support, through assistance in regulatory processes to resolving all paperwork. Over the past eight years, companies from 165 countries have invested more than $523 billion in about 60 sectors. Under the umbrella of Invest India, the Startup India agency was launched to promote entrepreneurship, which has quickly become home to more than 75,000 startups and over a hundred unicorns. In just 79 months since its official launch in January 2016, Invest India has become the central place for startup development, which has become the third global startup ecosystem.
Which companies and investors have you managed to attract, from which industries? And was that really the goal, as the usual aim is to attract manufacturing, especially greenfield investments?
Invest India has played a pioneering role in attracting exactly greenfield investments, such as the wind farm of the Danish company Vestas. With our help, the company built a manufacturing facility in just 15 months, which is a record for such a company in the world. Here is another example from the technology sector – we helped Pegatron, one of Apple’s largest contract manufacturers, quickly establish a greenfield company and expand it; specifically, we helped the Indian branch of the company get up and running in just one month. Here is another fresh example from the medical field. We assisted in the establishment of a factory for the production of medical equipment for the Luxembourg company B Medical Systems, which is a greenfield investment for the production of refrigerators necessary for storing vaccines, which opened 350 new jobs. This is not only the first facility of the Luxembourg company in India but also the first outside its home country in several decades of its existence. These are all proofs that our policy of creating a good investment climate, not only in the case of B Medical Systems, shortens the time from the initial idea to the launch of business to just 12 months. Invest India is an example of how government agencies can truly operate in a market-oriented manner and promote the country as one of the most interesting for investments.
You have clearly focused on value-added industries, after all, they contribute the most to GDP growth. On the other hand, when it comes to exports, India largely exports – workers. Even to Croatia. Is export equally important to you as attracting investments?
Indian exports this year exceeded $400 billion, which is significantly higher than the five-year average and is largely a result of renewed growth after two years of the pandemic. This is also the highest level of exports in the country’s history. The government has launched several manufacturing initiatives in various value-added industries, thanks to which the domestic manufacturing sector has literally flourished, making it easier to achieve the goal – to become competitive in the global market. Our total manufacturing capacities are reflected in a diversified export portfolio that includes the production of high-tech products, electronics, and food. In addition, India has signed free trade agreements with many countries, aiming for growth in the amount of value-added goods and an increase in the export of finished and semi-finished products. The growth of total exports directly affects the employment rate and productivity. By focusing on value-added industries, India has created an ecosystem in which government and business support each other, thus ensuring modern jobs for young people. Speaking of the workforce, it is not just a demographic fact but also a huge talent pool. For example, India has the highest number of female pilots in the world, twice as many as the USA. So, it is not just about a large population but, above all, about opening new opportunities for growth in standards for all. For investors, India is a top choice; for those seeking jobs, the opportunities are immense. We are a young nation, with more than half of the population under thirty years old. This is a large pool of high-quality workers for the rest of the world, including Croatia. I believe that connecting people in this way is one of the pillars of cooperation between Croatia and India.
What else is good to know about India and what does the interlocutor predict in macroeconomic trends can be read in the printed and digital issue of Lider.
