The Prime Minister recently headed the Virtual Global Investor Roundtable (VGIR) with a primary goal of encouraging investment in India. High-level government officials, business leaders across India, top financial market regulators, and leading global institutional investors actively participated in this virtual dialogue, illustrating the country’s commitment to economic growth and development.
Virtual Global Investor Roundtable: An Overview
The VGIR is a conversation platform that involves influential global institutional investors, high-ranking decision-makers from the Government of India, financial market regulators, and Indian business leaders. The Ministry of Finance and the National Investment and Infrastructure Fund (NIIF) are primarily responsible for the organization of this event.
The primary focus of the 2020 roundtable revolved around India’s economic and investment prospects, structural reforms, and the government’s vision to transform India into a USD 5 trillion economy by the fiscal year 2024-25.
Key Highlights From the Roundtable
The central theme of the discussion was the Aatmanirbhar Vision, an economic strategy designed to leverage India’s businesses’ capabilities and its workforce skills to transform India into a global manufacturing power. It was also noted that many companies in India rank high on Environmental, Social, and Governance (ESG) scores, showcasing their commitment to these crucial aspects of business operation.
Under the National Infrastructure Pipeline, India plans an ambitious investment of USD 1.5 trillion in diverse social and economic infrastructure projects with an objective to quicken economic growth and alleviate poverty.
Initiatives to Boost Manufacturing Potential and Ease of Doing Business
Several initiatives have been undertaken by the government to improve the manufacturing potential and encourage ease of doing business in the country. These include the introduction of ‘One Nation, One Tax’ system through Goods and Services Tax (GST), provision of one of the lowest corporate tax rates, and the implementation of a faceless regime for Income Tax assessment and appeal.
Additionally, the government has introduced new labour laws to balance workers’ welfare and ease of doing business for employers. Specific sectors also benefit from Production Linked Incentive schemes.
Steps Towards Financial Sector Development
The government has taken various steps in developing the financial sector that includes establishing a unified authority for the International Financial Services Centre, encouraging a liberal Foreign Direct Investment (FDI) regime, and introducing suitable policy regimes for investment vehicles like Infrastructure Investment Trust and Real Estate Investment Trust.
The implementation of the Insolvency and Bankruptcy Code (IBC), financial empowerment through Direct Benefit Transfer, and the introduction of fintech-based payment systems like Ru-Pay cards and BHIM-UPI are also noteworthy steps.
The opportunities emerging from the National Education Policy 2020, especially the potential of setting up campuses of foreign universities in India, were underlined during the discussions.
National Investment and Infrastructure Fund (NIIF)
NIIF is an entity backed by the government, primarily established to offer long-term capital to India’s infrastructure sector. The Indian government owns a 49% stake in NIIF, with the remaining stakes held by foreign and domestic investors. Controlling a significant stake makes NIIF India’s quasi-sovereign wealth fund.
Established in December 2015 as a Category-II Alternate Investment Fund, NIIF oversees more than USD 4.3 billion of capital across three funds: Master Fund, Fund of Funds, and Strategic Opportunities Fund. Its registered office is located in New Delhi.