(12 March 2024 – India) Indian Prime Minister Narendra Modi is forcefully positioning the country as the preferred alternative to China for global suppliers in order to ratify outstanding free trade agreements (FTAs).
As India approaches a national election this year, the government of the world’s fastest-growing G20 economy anticipates FTAs with countries from the United Kingdom (UK), Switzerland and Norway (EFTA) to Australia and New Zealand will shore up manufacturing and generate much need youth employment in particular.
Structural challenges and traditionally protectionist rhetoric remain in place however and may limit the uptake of “China Plus One” and outright China replacement foreign direct investment (FDI) activity.
“While there’s a rise in the number of corporates mentioning India or Indian investment on earnings calls, that doesn’t always translate into commitments. In many cases, the obstacles to investment or development on the ground in India remain significant. These gaps are creating problems for businesses, which means that the positive story around Indian prospects might not be delivered” commented Hinrich Foundation Head of Trade Policy, Deborah Elms to Shruti Srivastava for Bloomberg.