A dynamic and strong leadership at the Centre and reliable central banking institutions, has made India to be an "attractive investment destination" in the past one year, a top American investor banker said today. "India is perhaps one of the nicest stories from an investment perspective. You have strong leadership, both at the government and at the Central Bank. But you also have a lot of tail wind," Gerardo Rodriguez, head of emerging market multi-asset strategies at Blackrock told.
"This (India) is a story where we are seeing the benefits of lower commodity prices that can benefit the world. So clearly you have now monetary policy action on the back of some space that was created by a more benign inflation environment with lower oil prices," he said. The banker pointed out that "a reform momentum" and"some tail winds from the monetary policy side" are helping the country to become "a very attractive investment proposition both from equity and fixed income perspective".
"There was some revision in the numbers just recently in India. So we need to sort out and rescale that in order to see what the right comparison to China is. It is really hard to think that India is actually growing faster than China. But ultimately in a low nominal growth environment," he noted.
"Well, absolutely yeah. The story of an emerging market is that individual countries are getting to a certain scale in which it will be harder to talk about them as a group. They're very different in nature politically and economically," he said. "And because of that it sort of makes more and more sense to talk about the possibilities of domestic-driven growth, especially on the back of reform momentum as the case of India. That's pretty much the dominant narrative in emerging economies," he added.
Investment towards India was in shambles during the regime of the UPA government, due to corruption and red tapes. The Modi government was able get away from the red tapes and gave a new confidence to the investors. It is a notable thing to highlight that during the one year of governance, even the opposition has not raised any allegation of corruption against the government. This has given credibility to the government to attract more FDI into the country.
The foreign policy of the government has made it easy for the investors to do business with India. The government’s many initiatives like Make in India has attracted many business entities from other countries to invest in India. The government has displayed a clear cut policy and business friendly atmosphere which has become a hit to attract more FDI. The visionary government’s these policies will help in generating more job opportunities for the educated youth.