New Delhi: Prime Minister Narendra Modi said, a “stable India can power world stability”, was no political mantra. Modi connected the political stability and the economic development growth and reform program of India with the rising India’s contribution in the global economy. He delivered an overall message that India is strong and predictable and can be a source of confidence for businesses, investors and others.
Why does India’s stability matter to the world?
India is currently one of the largest economies in the world and has a significant presence in the global trade, manufacturing, technology, services and investment sectors. This makes it possible for events within India to affect beyond the nation’s borders.
Modi’s thinking is that a politically stable India can provide policy continuity. Large investments must be undertaken with the assurance of the reliability of policies and of government support for long-term projects. With a country that continues to make the changes and take steps to improve infrastructure, companies can make larger plans and longer-term commitments.
This is also significant in light of the uncertain global economy. As a result of geopolitical tensions, shifts in supply chains and conflicts, companies are on the lookout for more reliable markets and production sites. India desires to make itself one of those reliable destinations.
Stability is linked to reforms
The stability was linked by Modi to his reform programme. He stated that the ‘Reform Express’ would run at a greater speed “in the coming period”. He says that political stability allows a government to make hard choices and to sustain its reforms for many years rather than flitting this way and that.
Modi highlighted the shift from the earlier “Licence Raj” regime to an incentive-driven and growth-oriented approach in the new policy during the forum. He also spoke about reforms, including the Production-Linked Incentive (PLI) scheme meant for incentivizing manufacturing and investing in India.
What does “power the world” actually mean?
The essence of Modi’s message is that India’s growth can benefit beyond India as well.
The robust growth story of Indian economy creates more demand for energy, technology, raw material and services. It can also help the foreign companies looking to invest or manufacture in India. This includes the increasing importance of India in worldwide supply chains.
The industry leaders at the same forum also spoke about the “World+1” model, which is based on diversification of production by companies with the involvement of India in addition to the existing manufacturing bases. That is why stability becomes more crucial for Indian businesses now to the rest of the world.
The larger message
Behind Modi’s declaration is a far deeper message: India does not seek to be merely a huge domestic market, it seeks to become a “stabilising force” in the world economy.
Sustained economic growth, predictable policies, building up infrastructure, skilled workers, and ongoing reforms are essential for that to happen in India. The idea Modi has is that if India can continue to do this, it can give the world a sense of security in the face of economic and geopolitical instability.
To put it in plain English, Modi is selling India’s “home security” as a business opportunity for the world. The greater the investor and business confidence in India, the more can the Indian nation contribute to global growth and stability.
