Vibrant Gujarat Global Summit 2017: Text of Prime Minister Narendra Modi’s speech
I welcome you all to the Vibrant Gujarat Summit. I also wish you a very happy, prosperous and successful new year. I fondly recall the modest launch of this event in 2003. Since then it has been a very successful journey.
I express my gratitude to the partner countries and organisations – a list which includes Japan, Canada, USA, UK, Netherlands, Australia, Denmark, France, Poland, Sweden, Singapore and UAE. I particularly thank the initial partner countries of the Vibrant Gujarat event: Japan and Canada.
Many other prestigious global organisations and networks are also partners of this event. I thank you all for this partnership. Your presence is a source of motivation for business leaders as well as young entrepreneurs gathered here. Without your support, this event could not have seen eight biennial chapters; each better and bigger than the earlier one.
The last three events have been particularly big. The presence of political and business leaders from more than 100 countries, and a large number of organisations from around the world make this a truly global event.
I would urge the participants to reach out to each other and to derive the greatest benefit from this summit. You should also visit the trade show and the exhibition where hundreds of companies have showcased their products and processes.
Gujarat, the land of Mahatma Gandhi and Sardar Patel, also represents the business spirit of India. Through the ages, it has led in commerce and enterprise. Centuries ago, its people went across the seven seas in search of opportunities. Even today, this state boasts of being the origin of the highest number of our people living and working abroad. And wherever they have gone, they have created a mini-Gujarat. We proudly say: ज्यां ज्यां बसे एक गुजराती, त्यां त्यां सदाकाल गुजरात. In other words, Wherever a Gujarati resides; there, forever, resides Gujarat.
Gujarat is currently in the midst of the Kite Festival. May the kites inspire us all to fly high!
As I have often said India’s strength lies in the three Ds: Democracy, Demography and Demand.
Our biggest strength is the depth of our Democracy. Some people say that democracy cannot deliver effective and fast track governance. But we have seen in the last two and a half years that it is possible to deliver quick results in a democratic set up as well.
Over the last two and a half years, we have also evolved a culture of healthy competition among states. States are being rated on parameters of Good Governance. The World Bank is helping us in this process.
Coming to Demography, ours is a nation of vibrant youth. The disciplined, dedicated, and talented youth of India offers a globally unmatched work-force. We are the second largest English speaking country. Our youth are not merely looking for jobs. They have begun taking risks and often prefer to become Entrepreneurs.
On the Demand front, our rising middle class offers a huge domestic market.
The seas that surround the Indian peninsula, connect us to some of the world’s biggest markets, including Africa, the Middle East and Europe.
Nature has been kind to us. Our three crop seasons enable us to grow food, vegetables and fruits in abundance.
The diversity in our flora and fauna is unparalleled. The richness of our culture and its living symbols is unique. Our Institutions and scholars are recognised the world over. India is now an emerging R&D hub. We produce the world’s second largest number of scientists and engineers.
Our entertainment industry is making waves worldwide. All this helps ensure a good quality of life, at relatively low cost.
Our Government was elected first and foremost on the promise to provide clean Governance and end the prevailing regime of corruption and nepotism. It is our vision and mission to bring a paradigm shift in the ways of our polity and economy. We have taken a series of decisions and steps in this direction. To give you some examples, we are bringing a shift:
· From relation based Governance to system based Governance;
· From discretionary administration to policy based administration;
· From random interference to technological intervention;
· From favouritism to level playing field;
· From Informal economy to formal economy.
In doing this, digital technology has played a key role. I have often said that e-governance is easy and effective Governance. I have also emphasized the need for policy driven Governance. Online processes help bring speed and openness in decision making. Towards this end, we are working to adopt and absorb newer technologies, to bring about transparency, and to end discretion. Believe me, we are on the threshold of becoming the world’s most digitised economy. Most of you wanted this change in India. I am proud to say that it is happening before you.
Over the last two and a half years, we have worked relentlessly to realise India’s potential, and to set right the economy. The results have been encouraging. There has been substantial improvement in key macro-economic indicators like GDP growth, inflation, fiscal deficit, current account deficit as well as foreign investments.
India has become the fastest growing major economy in the world. Despite the global slowdown, we have registered excellent growth.Today, India is a bright spot in the global economy. We are seen as the engine of global growth.
World Bank, IMF and other institutions have projected even better growth in the coming days. In 2014-15, India contributed 12.5 per cent of global growth. Its contribution to global growth is sixty eight per cent higher, than its share of the world economy.
Creating an enabling environment for business, and attracting investments, is my top priority. We have to do this in order to create opportunities for our youth. With that spirit, we are moving towards implementation of some historic initiatives. This includes the Goods and Services Tax.
The Insolvency and Bankruptcy Code, the National Company Law Tribunal, a new arbitration framework and a new IPR regime are all in place. New commercial courts have also been set up. These are just a few examples of the direction in which we are going. My government is strongly committed to continue the reform of the Indian economy.
We have placed the highest emphasis on Ease of Doing Business. We have taken decisive steps to ease licensing processes, and rationalize provisions and procedures relating to clearances, returns, and inspections. We are monitoring implementation of hundreds of action points across various sectors, aimed at improving the regulatory framework. This is part of our promise of Good Governance.
The outcomes of our efforts are visible in India’s global rankings on various indicators. A number of global reports and assessments over the last two years have shown that India has improved its policies, practices and hence its economic profile.
India’s rank has improved considerably, in the World Bank’s Doing Business Report.
India is ranked third in the list of top prospective host economies for 2016-18 in the World Investment Report 2016 released by UNCTAD.
Our rank also improved by thirty two positions in World Economic Forum’s ‘Global Competitiveness Report 2015-16 and 2016-17’;
We have moved up sixteen ranks in the ‘Global Innovation Index 2016’ brought out by WIPO and other institutions;
We have moved up nineteen positions in the World Bank’s ‘Logistics Performance Index of 2016.’
You can see that we are moving closer to global best practices. Day by day we are getting more and more integrated with the world. Our confidence has been boosted by the positive impact of our policies and practices. This also gives us the motivation to further simplify our processes to become the easiest place to do business.
Every day, we are further rationalising our policies and procedures, to make it simple for businesses to establish and grow.
We have liberalised our FDI regime in many sectors and in various ways. India is today among the most open economies.
This change in environment has been recognized by both domestic and foreign investors. An encouraging Start-up eco-system is now taking shape in the country. This unleashing of the youth power is heartening.
The total FDI inflows in the last two and a half years have touched US Dollars one hundred and thirty billion. The FDI equity inflow in the last two financial years was sixty per cent higher as compared to previous two financial years. In fact, the total FDI inflows received during the last year have been the highest ever.
The number of countries from where FDI is coming in, and the sectors in which they are being routed have also diversified in the last two years. India is now the leading recipient of capital investment in the Asia-Pacific. It also continues to be among the top ten countries globally in terms of FDI inflows.
But the story does not end here. India has left every other country behind in terms of providing return on investment. In 2015, India has risen to first position in the Baseline Profitability Index.