The World Economic Forum meet in Davos earlier this month was held in the backdrop of considerable turmoil in financial markets amid worries over global growth. However, many business leaders at the summit, including IMF chief Christine Lagarde, said that India remains a bright spot. Kevin Sneader, Asia chairman of global consulting firm McKinsey, spoke to NDTV at Davos about investor interest in India.
What has been the level of interest in India this year?
It has definitely increased. The level of interest last year was high and but this year it is higher. It is not just because that growth has slowed in China. People are quite interested in the growth India is delivering. They are asking the question can we expect more. Is this going to be a lasting change?
Will the interest translate into action (investment)?
Time is going to tell. But in terms of being at that stage between vaguely interested and ready to commit, we are definitely nearing the point of decision. This window of opportunity is important for India. The world is looking at a place where you can get reliable, consistent growth. But they (investors) are asking is it possible to build a sustainable profitable business in India that can flourish over the longer term?
What investors are looking for?
They are looking to see infrastructure investments are being made. They can see some are being made. They are looking to see administrative burden being lowered on business. They see some progress in that regard. Is the tax system going to be simplified. Will GST happen or not? Are labour laws being simplified? How ownership rights are going to be protected? Is the commitment to build the skill of the workforce happening at the scale necessary to absorb 69 million new people coming into the workforce in 8-10 years?
