States secure massive investment pledges at WEF, but execution holds the key

WITH OVER ₹20 LAKH CRORE investment commitments, India’s 100-plus contingent of top industrialists, prominent Union ministers, high-ranking bureaucrats and heads and representatives of at least six state governments has returned from Davos, Switzerland, after attending the annual World Economic Forum (WEF) summit. This was India’s largest-ever presence at WEF, one of the most sought-after networking events for the global high and mighty. Incidentally, the Indian interest has peaked at a time new U.S. President Donald Trump has taken a clear stand against global collaboration and climate action, the two major agendas the WEF has been trying to push. Trump, in his virtual message to the WEF, invited global businesses to make in America, saying the country offers lowest taxes. He also warned that they will have to pay an import tariff if they don’t make in America. “Under the Trump administration, there will be no better place on earth to create jobs, build factories or grow a company than right here in the good old U.S.A.,” he said.

Well, every country has been attending the WEF for the same reason: attract investments and manufacturing, minus the threats, of course. In India’s case, domestic companies took the lead this time. For instance, Reliance Industries signed an MoU with the government of Maharashtra for investing ₹3.05 lakh crore in diverse sectors, including hi-tech manufacturing, new energy, retail and hospitality, creating three lakh jobs in the state. Sun Petrochemicals agreed to invest ₹45,000 crore in large pumped storage hydro power in Telangana.

The states that participated in the Davos summit were also enthusiastic in their responses. “Record-breaking MAHA MoUs!” Devendra Fadnavis, chief minister of Maharashtra, said on social networking platform X after his state bagged most investment commitments — 61 MoUs with a total investment of ₹15.7 lakh crore that will create 15.95 lakh jobs. Telangana chief minister Revanth Reddy termed his trip as highly successful with ₹1.78 lakh crore investment commitments and potential for 49,550 jobs. The companies included Amazon AWS Cloud (₹60,000 crore), Sun Petrochemicals (₹45,500 crore) and Tillman Global Holdings (₹15,000 crore). Another state that announced details of investment commitments at the WEF is Uttar Pradesh. Sify Technologies promised to build an AI Hub in Lucknow by investing ₹1,000 crore. Lords Mark Industries committed ₹1,200 crore for a 300 MW solar plant and a roof-top wind energy turbine in the state.

Andhra Pradesh chief minister N. Chandrababu Naidu said he held fruitful discussions with chief executive officers of globally-renowned companies and representatives of different nations. Kerala, participating after two decades, used the opportunity to invite investors to its own Global Summit in Kochi on February 21 and 22. “Kerala is globally renowned for impressive achievements in human development indicators. In recent years, the state has also made significant strides in the industrial sector. Through more than 70 meetings in Davos, we were able to present Kerala’s growth story to the world,” said state industries minister P. Rajeev. The delegation from Tamil Nadu focused on showcasing strengths in hosting next-generation businesses.

But why do Indian companies choose Davos to announce investments in their home country considering that state-level summits often attract bigger investments (such as ₹45 lakh crore at Vibrant Gujarat Global Summit a year ago)? Forums like the WEF are more suited for showcasing one’s capabilities to the world than investment commitments. Given the geopolitical conditions, including the protective stance of major liberal economies like the U.S., the Indian delegation has done well on both counts. How many of these commitments translate into investments is what needs to be seen now.