Upcoming years is going to be India’s “golden moment” in key sectors like technology, pharmaceutical, e-commerce, and manufacturing, with almost USD 20 billion foreign direct investment in the country amidst the coronavirus outbreak. Coronavirus is sweeping the world, especially the US and India. In spite of that, the investment is going to help India moving towards a global business hub.
India has received foreign direct investment of over USD 20 billion in the last few months during the coronavirus pandemic, which has had an adverse effect on businesses across the world apart from the over-6-lakh lives the infection has claimed so far.
The coming years is the golden moment for India moving towards a global business hub; using digital and technology — whether it’s Medicine, Telemedicine, E-commerce, and Logistics — in every segment of the market. Whether it’s a local grocery shop, everything is going to be digital. It is the golden moment that India should seize.
Referring to the series of FDI into India post-COVID-19 outbreak, it is unprecedented by any standards. Prominent investments include USD 10 billion from Google, USD5.7 billion from Facebook, USD 1.2 billion from Walmart, and USD 1 billion from Foxconn.
There will be many more deals this year. You’ll see a lot more companies coming in, a lot more money coming in. A lot more investments are waiting to invest in India.
- Amazon (e-commerce Company) continues to invest in India.
- Other companies are looking at India now.
- Private equity guys are looking at India. Sovereign funds will be looking at India. Definitely, India is going to be the hot destination for technology money.
The current anti-China sentiment is also helping India bag big investment. Relations between the US and China have spiraled downward after Washington criticized the Asian powerhouse’s handling of the COVID-19 pandemic. The US has questioned a new national security law in Hong Kong, the treatment of Uyghurs Muslims, and security measures in Tibet.
This gives India an opportunity for an economic game-changer and it’s predicated by two things.
- The number of smartphone users (in India) is over 500 million, maybe even close to a billion.
- The second, the government. Push for digital combined with COVID-19 outbreak, which has taken (number of) digital transactions through the roof.
The entire business ecosystem is adopting new technologies like never before, which not only provides easy solutions in business but also is a market in itself.
On the ground (during the coronavirus outbreak) and everybody is forced to go digital. This is a huge tipping point. So, this is an opportunity for India to seize and not let it go to waste.
Indian ministers, key bureaucrats, and technology industry leaders put together a roadmap, set of regulations and authorizations so that companies can come in easily and avoid all the problems of privacy, security in the future. India needs to iron out all the impediments to businesses immediately to ensure smooth sailing for all parties.
The government needs to lead the charge now at this moment, and say let’s get the leaders together, let’s get the bureaucrats, let’s get the technology industry, the start-ups, let’s get everyone and lay down the rules, regulations, and roadmap, so everybody can work to a common purpose.