Author: AsiaOne

India’s Minister of Information Technology, Ashwini Vaishnaw, made a significant announcement about India’s aim to attract $100 billion in annual Foreign Direct Investment (FDI) in the next few years.

In an interview at the ongoing World Economic Forum in Davos, Switzerland, he presented a comprehensive growth strategy with a vision of a consistent growth rate of 6–8% for the next ten years. This strategy will primarily focus on increasing manufacturing, uplifting the bottom of pyramids, investing in digital and physical infrastructure, and enhancing trouble-free business processes.

Vaishnaw said that since PM Modi took office in 2014, India has been a magnet for foreign investment, and major players like Apple, Samsung, Kia, and Airbus have made substantial investments in India. Despite previously criticising Modi’s protectionist policies, India recorded $ 33 billion in foreign direct investment inflow in the first half of 2023-2024, whereas, it was $ 71 billion in FDI in 2022-2023. He emphasised that, according to investors, India is currently the most important investment destination.

The RBI increased its growth forecast for the current financial year to 7 per cent from 6.5 per cent. Meanwhile, as per the National Statistics Office, India’s GDP is expected to increase by 7.3 per cent, making it the fastest-growing economy.

On Wednesday, PM Narendra Modi inaugurated three major infrastructure projects worth more than Rs 4,000 crore in Kochi, Kerala. These projects include Cochin Shipyard Limited (CSL), the New Dry Dock (NDD), the International Ship Repair Facility (ISRF), and the LPG Import Terminal of Indian Oil Corporation Limited.

The NDD facility was built at the nation’s largest dry dock, the Cochin Shipyard. The total cost of constructing the dock facility was Rs 1799 crore, and it can accommodate large ships, oil rigs, and LNG. The 600-tonne gantry crane-equipped dual-purpose dry dock can be used for both shipbuilding and ship repairs.

The International Ship Repair Facility was built for 970 crore, consisting of six workstations, to help it establish itself as a major ship repair centre. The IOC LPG Import Terminal was built for 1236 crore to cater to the LPG scarcity in southern India.

The project will benefit bottling industries and ensure LPG delivery through pipeline and road transfers. It aims to save 150 crore rupees in logistics costs annually and cut 18,000 metric tonnes of carbon dioxide emissions annually.

These projects were inaugurated by Mr Modi with a vision to transform Indian ports, the waterways sector, and the shipping sector.

On Tuesday, the United Kingdom will establish a ‘Critical Imports and Supply Chains Strategy’ to strengthen the security of supply chains for essential items like medicines and minerals.

Amidst the ongoing hindrance in the logistic supply by Houthi on ships in the Red Sea, the British government will establish a group to assess risks on critical imports. The Houthi organisation in Yemen is backed by Iran and has been targeting international maritime channels for a while. Furthermore, the ongoing tensions in the Middle East, the COVID-19 pandemic, and the Russia-Ukraine conflict have greatly affected the supply chain globally.

The Department for Business & Trade stated that the strategy has been in work for several months and will positively contribute to the development of a safer trading environment. The UK is collaborating closely with its allies, particularly the United States, to secure the supply chain. The government will be creating a portal for business owners to report supply disruptions post-haste. Additionally, it will create a Critical Imports Council for industries and the government to collaborate and reduce the risk involved.

The strategy aims to develop resilient and secure supply chains that safeguard the businesses of over 100 leading UK firms.