Lord Gerry Grimstone, chairman of Gemcorp Capital Management, stated that although India is now one of the world's most appealing locations for international investment, the country's less developed regions still require attention.
Speaking at a session on 'Unlocking Growth through Foreign Investment' on Saturday, the former UK minister for investment claimed that manufacturing helps re-establish social hierarchies in towns and cities, which has a "profound" social and economic impact.
"Not coincidentally, foreign investment has multiplied by 20 in India over the past two decades, and this is especially true since 2014," Grimstone remarked. There have been numerous economic shifts and policy shifts since 2014, including "a real sea change in the welcoming attitude that India pays to foreign investors," a more transparent tax law, and the effects of an easier business climate.
India, he claimed, has a "very investor friendly environment" and is currently among the world's most alluring locations for international investment. What this means for the future is enormous.
At present, 90% of FDI in India goes to just five states, according to Grimstone. "How can we help states that have lagged behind or weren't fortunate enough to reap the benefits of this?" he proposed. According to him, this is analogous to the situation in the United Kingdom, where London is home to a highly concentrated economic powerhouse. We discovered that investment from outside was crucial. We encouraged too many foreign investors to set up shop in the UK's less developed regions, especially in the manufacturing sector, he added. Businesses in the UK that had received investments from outside sources were 70% more productive than those based in the UK alone. These businesses were a boon to the British economy because they exported more, paid higher wages, and created more intellectual property than their fellow Britons.
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