Modi asks states to vie for slice of foreign investment pie

Japan and China have committed investment of $35 bn and $20 bn, respectively, in next five years

Prime Minister Narendra Modi on Thursday asked states to attract as much as they could of the $100-billion foreign investment promised by three countries.

"Be it Japan, China or the US, $100 billion has applied for a visa to India. Now, it is up to states to grab a share of this investment," he said on the second day of Global Investors Summit here.

The PM had visited the three countries last month. Japan and China committed investment of $35 billion and $20 billion, respectively, in the next five years.

Though the US didn't commit any specified amount, the US India Business Council told Modi its members had identified projects that would attract about $41 billion in the next three years.

The investors' summit here is being attended by Reliance Industries chief Mukesh Ambani, Reliance Group chief Anil Ambani, Adani Group head Gautam Adani, Tata Group chief Cyrus Mistry, etc. Ambassadors of 28 countries are also attending the summit, which has nine partner countries.

Addressing those present at the summit, Modi said India's attractiveness as an investment destination was regaining momentum. "Global sovereign ratings agencies are once again gearing up to upgrade India. This is testimony to the fact that we are growing again," he said.

Recently, Standard & Poor's had upgraded its outlook on India's sovereign ratings from 'negative' to 'stable'. The rating, however, was retained at the lowest investment grade.

The focus of the government, Modi said, was to generate employment by boosting all the three sectors---agriculture, manufacturing and services. He said value addition in agriculture and focus on infrastructure would help farmers. He urged industrialists to add value to agro products.

To bridge the gap between the demand and supply of those with specific skill sets, Modi invited investments in skill development, under the public-private-partnership model.

He said foreign investors shouldn't treat India as a market alone, adding they should also focus on turning it into a manufacturing hub to increase the purchasing power of Indians. "In the manufacturing sector, we should give impetus to products that can be exported," he said. In this regard, he termed his 'Make in India' initiative a win-win proposition.

On the lines of Modi's initiative, Madhya Pradesh Chief Minister Shivraj Singh Chouhan had, on Wednesday, launched a 'Make in Madhya Pradesh' campaign.

Complimenting Chouhan for the performance of the Madhya Pradesh government, Modi said the state was the first to take steps on the defence manufacturing front by proposing to set up units in Jabalpur and Gwalior.

It was also setting up two electronic estates to make the Digital India campaign a reality, the PM said, adding 3.6 million bank accounts had been opened in the state under the Jan Dhan Yojana.

He termed Madhya Pradesh the "heart of India".

The Centre, Modi said, wouldn't discriminate between states on the basis of political affiliations. "The Centre and states are not rivals or enemies...The Centre will stand shoulder-to-shoulder with all states, irrespective of political affiliation, to facilitate economic growth."

Stressing the importance of railway projects, he said, "Railways is the economic lifeline of the country. Private investments in the sector and better efficiency will go a long way in ensuring development and job creation by the sector."

Earlier in the day, Shivraj Singh Chouhan had rolled out the red carpet for industry. "Come, invest in Madhya Pradesh and we will match your expectations. My state has witnessed seven years of double-digit growth, ensuring available land bank and power sufficiency for businesses," he said, adding Madhya Pradesh was ideal for investment, with an abundance of resources and skilled manpower.

He promised to make the state the next information technology hub of the country.