‘Reforms Could See New Investment, Realignment In India’

NEW DELHI: It is said that India will reform only when its back is to the wall. The pandemic appears to have done that. An added incentive are reports that international businesses are seeking to diversify their investments away from China, and India could gain potentially if some of that money flows this way. In this exclusive chat with StratNews Global, Dilip Chenoy, secretary-general of the Federation of Indian Chambers of Commerce and Industry, says key reforms including those relating to labour, have already been announced by several Indian states. As for land, there is sufficient available across India. This is seen as a good way to start. In Chenoy’s view, what could be the game changer this time, is the cut in corporate tax rates announced some time ago, which could be a big incentive for investment. Add to that, the sentiment in many parts of the world that there is a need for alternative supply chains given the disruption caused by the coronavirus. International investors also have the attraction of the Indian market. Recent IMF projections say India is headed for a “V” shaped revival with growth likely to hit 7% next year.