“The Indian economy currently growing below 5% GDP has huge potential for probable development. However roadblocks in the form of fragile leadership, lack of competent governance and poor infrastructural facilities play hindrance. Proactive leadership, progressive industrial policy and a conducive investment climate will fast pace economic growth of the nation”, said Mr. Joseph Owen, President, Development and Investment Advisory Services and Former Director, World Bank during an interactive meeting organized by MVIRDC World Trade Centre Mumbai and All India Association of Industries with the Ex-World Bank official.
The demographically large Indian nation should look forward to diversifying its economy. The rapidly progressing South American, Central American and Caribbean markets hold tremendous prospects for the Indian business community. This region is home to a large middle income consumption markets with access to formal credit institutes. The region is rich in natural resources such as iron, coal, oil and natural gas which may be tapped by potential investors. Also, the region commends itself for a stable political climate and conducive commercial atmosphere, said Mr. Owen.
Citing the growth story of China Mr. Owen said that the Chinese economy has undergone rapid industrialization due to paramount emphasis on its infrastructural sector. Also, China has invested huge capital in global markets which shall bear fruits in days to come. On the similar lines it is suggested that Indian investors invest in global markets as well, Mr. Owen noted.
However, Mr. Owen cautioned Indian investors about the possible pitfalls in investing in an unfamiliar economic region. Prospective investors must study the macroeconomic scenario, the political situation and foreign investment norms before investing in an economy, Mr. Owen added.
The Latin American region and India must look forward to enlarging bilateral ties for mutually beneficial relationship in the long run. The Latin American region which is rich in natural resources such as iron ore, coal, oil and natural gas and agricultural products such as coffee, soya, sugar, pulp and paper may export the same to India. India may utilize these resources to boost its manufacturing sector and serve its large population, Mr. Owen said.
Secondly, the Latin American region can take learning lessons from the competent tertiary sector of India comprising of engineering and IT services, education, etc, Mr. Owen added.
Earlier, in his welcome remarks Mr. Vijay Kalantri, Vice-Chairman, MVIRDC World Trade Centre Mumbai and President, All India Association of Industries said that the Indian economy in its pursuit towards growth needs to address lingering issues in the form of sluggish industrial growth, rising inflationary pressures, lack of infrastructural facilities and deficient capital. Also, establishing transparency in government norms is vital. In order to boost its manufacturing sector and addressing the inflationary concerns India may import raw materials and crude oil from the Latin American countries. Also, a conducive investment climate and able political leadership will attract foreign capital from the Latin American countries into India.
January 4, 2014
From (L-R) : Mr. Joseph M Owen, President, Development & Investment Advisory Services and Former Director, World Bank, Mr. Vijay Kalantri, Vice Chairman, MVIRDC World Trade Centre Mumbai and President, All India Association of Industries, Capt. Somesh Batra, Vice Chairman, MVIRDC World Trade Centre Mumbai during an interactive meeting on “Tapping the lucrative South and Central American and Caribbean markets- avoiding pitfalls and finding cost effective entry strategies” organized by MVIRDC World Trade Centre Mumbai and All India Association of Industries.