India beckons Thais as New Delhi launches FDI campaign

India has urged Thais to consider investing more in that country under the newly announced “Make in India”  campaign, which is aimed at attracting more foreign direct investment and significantly boosting annual economic growth to more than 10 per cent within two years.

During a webcast of the launch of the campaign by Indian Prime Minister Narendra Modi yesterday, Ambassador to Thailand Harsh Vardhan Shringla said in Bangkok that the new policy would present greater opportunities for Thai and other foreign investors.

The Indian Embassy and the India-Thai Chamber of Commerce co-organised an event yesterday to promote the “Make in India” campaign. The event in Thailand was attended by 150 people, including representatives from the Commerce Ministry, the Federation of Thai Industries, the Board of Investment of Thailand, the Thai Chamber of Commerce and Board of Trade, and company representatives from both countries.

Modi said India would offer several factors to attract more investment. These include a democratic administration and favourable demographics. The country has high potential demand and a large and productive workforce, with 65 per cent of its 1.25-billion population under 25 years old.

“Thailand has expertise in many manufacturing industries and high technology adoption, as well as close ties with India,” Shringla noted, adding that these should make this new policy advantageous for Thai investors.

Modi presided over the official launch of the “Make in India” campaign ahead of his official visit to the United States, rolling out the red carpet for investors through a string of measures including relaxed regulations. The campaign is the prime minister’s signature initiative to urge companies, both domestic and foreign, to invest in India as a strategy to increase development and boost economic growth. 

The new campaign is aimed at reducing income gaps, as the development will be spread widely to urban areas. Gross domestic product is projected to see annual growth of 10 per cent within two years after the launch of the campaign.

The campaign will emphasise five pillars: infrastructure development, manufacturing growth and employment creation, energy efficiency, skill development, and an improved business environment.

The ambassador said Indian government agencies would work seriously to serve the policy, such decentralising, deregulating, and cutting red tape to facilitate more investment. India may offer tax holidays of up to five years, or possibly longer on a case-by-case basis in industries that the government is interested in supporting.

Thai industries with high potential to invest in India include automobiles and parts, infrastructure development, construction, pharmaceuticals, tourism and food processing.

Susheel Kumar Saraff, president of the India-Thai Chamber of Commerce, said a lot of benefit would come to Thailand under the policy of closer cooperation. Many Thai enterprises could look for chances to invest in India. India is a large market and the government will reduce red tape, which should improve the opportunities for Thais.

Saraff said he planned to lead Thai and Thai-Indian enterprises to explore opportunities in India in the near future. Interesting sectors for Thais are wastewater treatment, healthcare, garbage management and biodiesel production, he added.

Teyasuni Shulkul, managing director to Omex International, said Thai-Indian business groups also planned to invest in India in the near future. But first they had to study the possibilities for about six to 12 months.

According to the “Make in India” campaign, the programme emphasises 25 sectors with a focus on job creation and skill enhancement. These include automobiles, chemicals, information technology, pharmaceuticals, textiles, ports, aviation, leather, tourism and hospitality, wellness, railways, auto components, design manufacturing, renewable energy, mining, biotechnology, and electronics among others.

As part of the plan, foreign-investment caps in construction will be eased to enable greater participation in the government’s 100 smart-city projects and affordable housing. FDI caps in railways and arms production have already been eased to 100 and 49 per cent respectively.