Top News

New Delhi [India], May 20 (ANI): Foreign Direct Investment (FDI) remains a focus in India's economic strategy to secure interest-free capital, drive technological advancements, and stimulate job creation, said former Foreign Secretary Harsh Vardhan Shringla on Wednesday, highlighting the steadfast efforts and role of Prime Minister Narendra Modi in attracting long-term investments.
Speaking in an interview with ANI, Shringla addressed recent apprehensions regarding a slowdown in foreign inflows, emphasising that securing investments is a continuous priority for the nation.
"Foreign direct investment is a constant important requirement because it is a very important way that you can bolster up your foreign exchange reserves without having to pay interest on it, and it brings you technology, it creates employment," Shringla remarked.
Shringla highlighted Prime Minister Modi's recent 5-nation tour as a factor in diversifying and strengthening India's economic partnerships globally. He pointed out that the success of these diplomatic efforts is reflected in the growing financial commitments from a varied group of nations.
"Prime Minister Modi has gone out of his way to engage countries in this regard. I think the success of his tour can be seen from the fact that countries have pledged their money in showing their confidence in India. I mentioned the UAE, but both Sweden, the Netherlands and Norway have all looked at how they can increase economic cooperation with India, increase trade with India and look at how they can enhance their economic presence in India," he said.
Shringla described the prevailing economic market as deeply cautious, making India's ability to pull in foreign capital all the more significant. "I think that's important at a time when you say that capital is today very flighty. Investors are very, very cautious. There is a bearish sentiment. The market is not bullish; it's bearish. So there is a run of money, and at this time, attracting foreign direct investments is important," he explained.
Referring to the recent US Executive Nuclear Mission delegation, he highlighted that investors are betting heavily on India's decades-long growth trajectory and exploding power requirements.
"Yesterday, I was at this event in which a delegation of US nuclear energy manufacturers had come down. They are looking to invest in India. They are confident that over the next 10, 20, 30 years, India is going to look good. The demand for energy in India is only going to increase. So they are happy to invest in cutting-edge technologies in India.
He stressed that the Prime Minister's personal involvement heavily influences these countries' final investment choices.
"Whether it's the UAE, whether it is Northern Europe, countries are looking to India. And the message the Prime Minister carries, Prime Minister Modi personally carries, has a lot of weight with these countries in taking these decisions that they make," he said.
Speaking about the disruption brought in by the West Asia conflict, the former Foreign Secretary that the crisis was bound to have global repercussions given the Gulf region's strategic importance in energy security, trade and international connectivity.
"Well, whenever you have a crisis of this proportion, it is bound to have an impact not just in the region that it emanates from but across the world. And the Gulf area is very important from the point of view of energy security, is very important from the point of view of trade, its strategic location," he said.
Shringla further highlighted India's deep economic and people-to-people ties with the Gulf region, noting that nearly nine million Indians live and work there while a significant portion of India's energy imports also come from the region. (ANI)