Right atmosphere, not incentives, key for investments: Jamshyd

The government should focus on improving the system efficiency and create right atmosphere for investments, said Jamshyd Godrej, Chairman, Godrej & Boyce (G&B). The country as well as each state should create the right conditions for investment similar to what countries like Vietnam did when the China plus one opportunity came up, he added in one of the recent interactions.

“I don’t believe that the financial incentives are good for the long-term. In the long-term you need to make India an efficient country to attract investment from within and abroad. For instance, when China plus one opportunity came up, everyone found it easy to enter Vietnam. Now it may have its own problems like shortage of people. So creating right investment atmosphere is much more important than giving financial incentives for manufacturing,” he said.

“You have to be efficient, speedy and reduce all the red tape and multiplicity of approvals. This is a difficult thing to do,” he added.

China has developed a robust supply chain of components for the entire cold chain industry. It will take time for the country’s supply chain get robust, he said. “The concentration has to be on developing the entire supply chain. The sooner we are able to develop the supply chain, the better we will be,” he added.

“China has built scale which is unheard off. They make for the world, whereas we make for India. A lot of investments have to be made for our supply chain to catch up. A lot of schemes have been made such as the PLI scheme to develop that. It is going to be a challenge,” said Godrej.

The Union Budget session began on Friday with President Droupadi Murmu addressing both Houses of Parliament. Finance Minister Nirmala Sitharaman subsequently tables the Economic Survey 2025 in Lok Sabha and Rajya Sabha. The Survey report, which examines the infrastructure, agriculture, and industrial development, is prepared by a team led by chief economic adviser, V. Anantha Nageswaran.