India oasis of ‘stability, calm’ amid global challenges: FM

Finance Minister Nirmala Sitharaman, addressing the Global Investors Meet ‘Invest Karnataka 2022’ in Bengaluru today, said the Indian economy has its own challenges but they are not as severe as those experienced by other nations. She said the country under PM Modi won't be threatened by external unfavourable developments.

The FM said she was told by global investors during her recent U.S. visit that India seems an oasis of “stability and calm” amid global macroeconomic headwinds, and that challenges are being carefully firewalled. "This shows India is very clearly an attractive destination for investors," she said. 

"...and Karnataka is a state that has carefully reflected the policies of the Centre. The state has always made sure its policies remain consistent. It has made them even more nimble according to the developing issues."

The FM said at a time when industries are moving out of different destinations such as China and even Europe, as they are going through a very trying period, industries are moving out towards destinations that are going to be attractive for other than just tax incentives.

“Karnataka is a leader in many sectors. First in renewable energy. First in EVs innovation. Home to about 7+ auto OEMs (original equipment manufacturers). (It has) 50+ auto component manufacturers. The state has over 45 EV startups," she said.

She said in Karnataka, over 50% of the MoUs have already been cleared and that the state is moving at a fast pace in sectors like mines and infra.

The minister added Karnataka stands first in IT services exports and second in total exports across all Indian states. It also stands first in aerospace and defence manufacturing. "No wonder investments are coming in for newer areas here," she said, adding that the state stands first in machine tools manufacturing, first in biotech production & exports, and first in electronics design and R&D in India.

"I have just laid down the canvas before us to understand the state, which is rapidly moving up, and performing better in setting high benchmarks. As a result, it (Karnataka) is going to behave like a magnate for investors," she said.

The minister told investors the state is “absolutely very nimble-footed to make sure that the policies are kept abreast of the global development at the time when they are trying to move in. During Amrit Kaal (India’s development journey in the next 25 years), Karnataka will be an essential foundation for many investors to contribute from here to the entire globe”.

Prime Minister Narendra Modi, who also spoke virtually at the event, said during the current uncertain times, most nations are convinced about the fundamentals of the Indian economy. “India received a record foreign investment of $84 billion last year,” he said.

Inviting foreign investors to invest in the country, the PM said India has set a target of becoming a developed nation by 2047. It’s important, he said, that investment and India's inspiration come together as the development of “an inclusive, democratic and strong India will accelerate the development of the world”.