Best of BS Opinion: Where are India's HNIs when it needs them?

Today's Opinion page looks at India's ambitious carbon trading policy, as well as the EFTA deal. Our columnists ponder what can be done to get Indian HNIs to invest and stay in the country

Hello and welcome to the Best of BS Opinion, our daily wrap of Business Standard's opinion page.

  As the EFTA deal shows, Indian officials seem to have grasped that a greater set of deals are possible when dropping the country’s high tariffs, which can be set off against other benefits, notes our first editorial. In fact, the agreement represents unusual flexibility from Indian negotiators. Gone are the days when trade deals consisted simply of reciprocal lowering of tariffs. Other variables such as investment, harmonised regulations and the reduction of non-tariff barriers must also be factored in. More importantly, the government must recognise that FTAs are only beneficial if they are used properly; else, they become nothing more than a lost opportunity. To do this, it must help exporters navigate an FTA's fine print, as well as address issues such as non-tariff barriers. Publicising the EFTA among stakeholders will enable them to utilise it properly and prepare for the agreement with the EU, which is a much bigger prize. 

 

India's Carbon Credit Trading Scheme (CCTS) kicks off October end, marking a turning point in climate governance. Indeed, its policies are among the most ambitious, especially its commitment of 500 gigawatts of renewable capacity by 2030 and the net-zero target by 2070. But this is easier said than done, says our second editorial. Unless Indian producers can credibly demonstrate their emissions performance, they risk losing access to lucrative markets, which will tax imports from nations with weak carbon governance. India must offer concessional credit and capacity-building initiatives. It must also avoid mistakes that others have made, like oversupply, weak data integrity, and thin trading. This can be fixed by focused monitoring, reporting, and verification frameworks, ensuring penalties, and preventing speculative trading. 

 

The United States' recent actions against India from extortionate tariffs to steep H-1B fees suggest that it hasn't taken favourably to India's rise on the global stage, a position that China likely shares, writes R Jagannathan. India's rise, he argues, must be driven by different global alliances and its own strengths. But this will take time and money, or patient money. The more pressing question, however, is why India's billionaires are not willing to put their money to good private use instead of bulking up their net worth. Equally troubling is why India's rich are leaving the country despite anti-immigrant sentiment on Western shores. One possible answer lies in the quality of life here, what with the taxman and the policeman always looking for the next shakedown. One solution may lie in opening up dual citizenship, giving HNIs a choice. The second, more fanciful one, is to have officially-appointed agents who iron away the creases of daily life in India by dealing with government and regulatory authorities. 

 

The recent increase in the H-1B fees to $100,000 has set tongues wagging about the opportunity India has by way of keeping talent at home. What is curious, notes Prosenjit Datta, that there hasn't yet been a single proposal from the government about how to attract that talent back home. In stark contrast, other countries such as the the UK, some EU nations, and even China are going to town about how they want to attract the best global talent, especially in STEM. If the Indian government really wants to retain talent, it must focus much more on research and innovation, especially in areas that will determine the future. It must also create opportunities and the ecosystem that support researcher-entrepreneurs, including putting monetary incentives in place. Just because the US is closing its doors doesn't mean Indian talent will return - they will just find the next best open door. 

 

As the world enters the age of AI, Manjima Misra's book 'Ink Over Algorithms: Why the Soul of Storytelling Transcends AI' is a timely reminder that it has both benefits and limitations, writes Neha Kirpal. The author emphasises the human voice in creative writing, but points out that it can also be very useful for other things like reworking drafts, speeding up workflows, creating dialogues, and strengthening research. At the same, she also raises some red flags, especially ethical concerns around presenting AI-generated content as one’s own work without attribution. At the same time, it can act as a powerful tool to sharpen children's imaginations and educational journey. The book, says Kirpal, is an essential read for students, writers, technologists, educators and policymakers, and comes as a timely call to embrace AI as an assistant rather than a replacement.