Indian High Commissioner urges Sri Lankan businesses to participate in ‘Make in India week’

By Shannine Daniel

The High Commission of India recently organised a road-show in Colombo to invite Sri Lankan businesses to participate in the ‘Make in India Week’, Mumbai from 13-18 February. 

The High Commission’s social media portal on ‘India-Sri Lanka Business Forum’ was also launched at this event. 

Noting that prominent Sri Lankan companies such as Brandix and MAS Holdings were already present and ‘making in India’, Indian High Commissioner, Y.K. Sinha called on the Sri Lankan business community to take advantage of their proximity to the fastest growing major economy in the world. 

Furthermore India is among the leading investors in Sri Lanka with cumulative investments of over $ 1 billion since 2003 as well.  

Sinha also noted the strong and vibrant economic and commercial ties between India and Sri Lanka and highlighted that both Governments were working towards upgrading bilateral and commercial relations. 

“In recent months, our two countries have continued discussions to take the economic and commercial engagement to the next level. A quantum leap in our economic and commercial relations can be achieved by forging linkages across the production and supply chains of the two countries,” he stated. 

High Commissioner of India to Sri Lanka Y. K. Sinha and Maharastra State Minister of Home, Marketing, Public Health and Tourism Ram Shinde after the launch of the ‘India-Sri Lanka Business Forum’ media portal – Pic by Sameera Wijesinghe

He revealed that the Government of India and the Government of Sri Lanka are eager to settle this agreement at an early date, within this year.

The High Commissioner went on to say that the ‘Make in India Week’ initiative, which was launched in September 2014, was part of the Government of India’s renewed focus on invigorating the country’s manufacturing sector. 

“This landmark initiative has made a tremendous impact on the investment climate of the country, and is reflected in the significant growth of overall Foreign Direct Investment (FDI) into India,” observed Sinha.  Since its launch, the Government of India has taken several reform initiatives to create an enabling environment that has provided a push to manufacturing, design, innovation and entrepreneurship. The growth in FDI has been significant after the launch of the initiative, with 48% increase in FDI equity inflows during the period October 2014 to April 2015, over the corresponding period last year.  

2014-2015 witnessed unprecedented growth of 7.17%, to $ 40.92 billion of investment by Foreign Institutional Investors. The FDI inflow under the approval route saw growth of 87% during 2014-15 with inflow of $ 2.22 billion despite more sectors having been liberalised during this period and with more than 90% of FDI being on automatic route.  

“These indicators showcase remarkable pace of approval being accorded by the Government and confidence of investors in resurgent India,” Sinha elaborated. 

Substantial investments have been received in areas which include electronics, automotive, food processing, textiles and garments, renewable energy and construction and the FDI target has been set at over 30%.

“With a growth rate of 7.5%, India has emerged as the fastest growing major economy globally and is one of the few bright spots in an economic landscape marked by an economic slowdown,” commented Sinha.

The ‘Make in India’ initiative aims to ensure that India is an integral part of the global supply chain. Key focus sectors such as defence, railways, construction, insurance, pension funds and medical devices have all been rapidly opened up for FDI. The Indian Government has also taken up a series of measures to improve its ‘Ease of Doing Business’ ranking. Fourteen services have already been integrated with an eBiz portal which will function as a single window for obtaining clearances from various government agencies.

“India’s rank has jumped 12 positions in the Ease of Doing Business 2016 list by World Bank. India has also improved 16 places in the Global Competitiveness Index 2015-16. The clarion call ‘Come Make in India’ has translated into an effective strategy and has succeeded in creating a buzz globally,” Sinha stated.

“Make in India has already created a strong impact marked by an improved business environment and economic growth, as India is now ranked first among world’s most attractive investment destinations,” revealed Sinha. 

The High Commissioner went on to highlight the 11 key sectors of Aerospace and Defence, Automobiles and Automobile Components, Chemicals and Petrochemicals, Construction Equipment, Materials and Technology, Food Processing, Infrastructure Development, IT and Electronics, Industrial Equipment and Machinery Micro, Small and Medium Enterprises, Pharmaceuticals and Textiles, that will play a major role in India’s manufacturing sector in future.

The chief attractions of ‘Make-in-India Week’ include a ‘Make in India Centre’, a platform for exhibiting innovative products and manufacturing processes developed in India and a ‘CNN-Asia Business Forum’ which would comprise of a series of seminars, round-tables and networking events on economic challenges and investment opportunities among many others. 

An Urban Planning Seminar on re-imagining Mumbai, a marathon 24-hour Hackathon and the TIME India Awards, which would recognise excellence in the world of manufacturing, are some of the other main highlights. The event will offer foreign investors and businesses unprecedented access, insights and opportunities to showcase connect and collaborate with young Indian entrepreneurs, industry leaders, academicians, and government officials at both central and state levels.

 “I am very happy to note that the Indo-Lanka Chamber of Commerce and Industry, under its President, Vish Govindaswamy, is mounting a 14 member delegation for the Make in India Week. I would encourage others to consider going to Mumbai for this event,” declared Sinha.  

Sinha also revealed that the  Indian Prime Minister Shri Narendra Modi  has given further impetus to India’s growth with several initiatives such as ‘Digital India, ‘100 Smart Cities’ and ‘Skill India’. Most recently, he has launched another ambitious scheme, ‘Startup India, Standup India’, in addition to the ‘Make in India’ initiative. This scheme involves a 19-point action plan for start-up enterprises in India, including a self-certification scheme related to nine labour and environment laws. The scheme, ‘inter alia’, seeks to encourage those ventures that would boost employment generation and assist in wealth creation. 

“We invite Sri Lankan investors to take advantage of these initiatives as well,” he stated.