With China entering a period of economic slowdown, the world needs more than one engine to support global growth and India is ready to fill that role, according to Indian Finance Minister Arun Jaitley.
Jaitley and his Prime Minister Narendra Modi have been on a global charm offensive around the world to attract investment into Asia’s third largest economy, which has largely held its poise while other emerging market countries have floundered.
While Modi was touring Silicon Valley to push his Digital India initiative to attract technology companies to the country, Jaitley was in Singapore and Hong Kong to meet business leaders in the region.
“China will still shoulder the largest growth in the world, but the world will need other reliable shoulders to carry it on,” Jaitley told CNBC in an exclusive interview.
Despite having one of the highest growth rates among emerging markets, India had traditionally failed to attract foreign direct investment comparative to the size of its economy due to regulatory complexities.
Data from the World Bank show between 2010 and 2013, an estimated $114 billion worth of foreign investments entered India. In comparison, during the same period, Hong Kong had $328 billion, Singapore $223 billion, and China $1.245 trillion worth of foreign investment.
The World Bank’s Ease of doing business Index, which is calculated by incorporating 10 indicators, ranked India 142 out of 189 countries this year.