Global investors are betting big on India despite rising challenges driven by geopolitical shifts notwithstanding the lowering of growth projections for the country by most agencies. Several business heads are now looking at India especially as China continues with its stringent Covid rules which have impacted operations.

A chief executive officer working with a Tokyo based multinational in New Delhi told India Narrative on condition of anonymity that a host of Japanese companies have already firmed up their plans to either expand or foray into India. In June Mitsubishi Electric Corporation announced an investment plan of about Rs 220 crore in its Indian subsidiary to set up a new factory in Maharashtra. Besides, a host of Japanese companies categorised as small and medium is also looking to come to India.

In May Prime Minister Narendra Modi who was in Tokyo to attend the QUAD summit met 30 Japanese CEOs and invited them to invest in India.

“After the PM’s visit, many companies are now looking to expand their operations in India,” the CEO said.

An official source added that the government’s focus is now on reviving growth. “Government officials and stakeholders have been asked to up the ante and focus on drawing investments,” the source said adding that the mantra is “Make in India for the World.”

A recently published report by the South China Morning Post (SCMP) noted that with Russia and China losing their lustre – at least in the medium term – bankers have looked to India as a “bright spark.”

Last month, Manolo Falco, Citigroup’s global co-head of banking, capital markets and advisory said that India is now one of the top markets for the lender to expand business on a global scale.

“India looks very steady and it has a government that seems to know exactly what they have to do,” Falco said.

India’s growth projections

The United Nations Conference on Trade and Development (UNCTAD) earlier this month slashed India’s growth projection to 5.7 per cent from the previous 8.2 per cent for the current financial year. The Reserve Bank of India and Asian Development Bank have pegged India’s growth rate at 7 per cent from the previous 7.2 per cent and 7.5 per cent respectively.

Also read: ADB pegs India’s growth rate at 7%, China’s at 3.3% for this year