Decision on developing global supply chains should be based on trust not only on costs: PM Modi

Noting that COVID-19 pandemic has shown that the decision on developing global supply chains should be based not only on costs but also on trust apart from affordability of geography, Prime Minister Narendra Modi said on Thursday that companies are now also looking for reliability and policy stability and India has all these attributes.

Noting that COVID-19 pandemic has shown that the decision on developing global supply chains should be based not only on costs but also on trust apart from affordability of geography, Prime Minister Narendra Modi said on Thursday that compes are now also looking for reliability and policy stability and India has all these attributes.

Delivering the special keynote address at the US-India 2020 Summit of US-ISPF, the Prime Minister said, "Aatmrbhar Bharat" merges the local with the global and ensures India's strengths act as a global force multiplier.

He said 1.3 billion Indians have embarked on one mission- to make an 'Aatmrbhar Bharat' or self-reliant India.

"'Aatmrbhar Bharat' merges the local with the global. It ensures India's strengths act as a global force multiplier. Time and again, India has shown that our goal is global good," PM Modi said.

He said there were opportunities in the public and private sector in India. "They cover core economic sectors as well as the social sectors. Recent sectors that have opened include coal, mining, railways, defence, space, and atomic energy."

Noting that the global coronavirus pandemic has impacted everyone, the Prime Minister said the current situation demands a fresh mindset. "A mindset where the approach to development is human-centric. Where there is a spirit of cooperation between everyone."

"While looking at the way ahead we should keep our focus on- ramping up our capacities, securing the poor and future-proofing our citizens. This is the path India is taking," he said.

PM Modi said India was among the first in creating a responsive system of lockdowns.

"This pandemic has also shown the world that the decision on developing global supply chains should be based not only on costs. They should also be based on trust. Along with affordability of geography, compes are now also looking for reliability and policy stability. India is the location which has all of these qualities," he said.

"As a result, India is also becoming one of the leading attractions for foreign investment. Be it America or the Gulf, be it Europe or Australia-the world believes in us. We have received over 20 billion dollars of foreign investment flows during this year. Google, Amazon and Mubadala Investments have announced long-term plans for India," he added.

The Prime Minister said India offers a transparent and predictable tax regime.

"Our system encourages and supports honest taxpayers. Our GST is a unified, fully IT enabled the indirect tax system. Insolvency and Bankruptcy Code has reduced risk for the entire financial system. Our Comprehensive labour reforms will reduce the compliance burden for employers. It will also provide social security protection to the workers," he said.

Pointing out that importance of investment in driving growth cannot be overstated, he said the government is tackling both demand and supply side of it.

He said efforts were being made to develop India as one of the lowest tax destinations in the world and there were incentives for new manufacturing units.

"Mandatory e- platform-based 'faceless assessment' will go a long way in helping citizens. The continued regulatory reforms in bond markets ensure improved ease of access for investors. There are tax exemptions to 'Sovereign Wealth Funds' and 'Pension Funds' for Infrastructure investment.FDI into India rose by 20 per cent in 2019. This when global FDI inflows fell by one per cent. This shows the success of our FDI regime. All of the above steps will ensure a brighter and more prosperous tomorrow. They will also contribute to a stronger global economy," the Prime Minister said.

He said the pandemic has impacted several things but it has not impacted the aspirations and ambitions of 1.3 billion Indians.

"In recent months, there have been far-reaching reforms. These are making business easier and red-tapism lesser. Work is actively underway on the world's largest housing program. Renewable energy infrastructure is being expanded. Rail, road and air connectivity is being boosted. Our country is creating a unique digital model to build a national digital health mission. We are using the best of fin-tech to provide banking, credit, digital payments and insurance to millions. All these initiatives are being taken using world-class technology and global best practices."

Noting that Production Linked Incentive schemes have been launched for- mobile and electronics, medical devices, pharma sectors, the Prime Minister said they have been well received.

He said such schemes are being planned for other champion sectors too and the reforms in agriculture marketing and 14 billion USD agriculture financing facility bring several opportunities.

"For challenges in India, you have a government that believes in delivering results. A government for which Ease of living is as important as the Ease of doing business. You are looking at a young country with 65 per cent population less than 35 years old. You are looking at an aspirational country that has decided to take the nation to new heights. This at a time when we mark 75 years of independence. You are looking at a country with political stability and policy continuity. You are looking at a country with a commitment to democracy and diversity. Come, be a part of this journey with us," the Prime Minister said.

He said despite India's large local needs in dealing with COVID-19 pandemic, India did not shy away from its global responsibility.

"The responsibility of being the world's leading producer of generic medicines. We ensured constant supplies to the world. We are also at the fore-front of research on the vaccine for Covid-19. A self-reliant and peaceful India ensures a better world," he said.

He said India was among the first to advocate the use of masks and face coverings as a public health measure.

"We were also among the earliest to create public awareness campaigns about social distancing. In record time, medical infrastructure was scaled up- be it COVID hospitals, ICU capacities and more. Starting from one testing lab in January, we now have around sixteen hundred labs across the country," he said.

The Prime Minister emphasized that the outcome of these efforts has been that a country with 1.3 billion people and limited resources has one of the lowest death rates per million in the world.

"The recovery rate is also steadily rising. I am happy that our business community, in particular small business been pro-active. Starting from almost nothing, they made us the second largest PPE kits manufacturer in the world," he said.

PM Modi said this is in line with India's spirit of challenging the challenge to emerge stronger.

The Prime Minister said through the entire COVID-19 period and the lockdown, the "Government of India was clear on one thing- the poor have to be protected."

"The 'Pradhan MantriGaribKalyanYojana' for India's poor is among the largest support system seen anywhere globally. Free food grain is being provided to 800 million people. This scheme operates for 8 months and 800 million people means:More than double of USA's population," he said.

"Free cooking gas is being provided to around 80 million families. Cash support has been provided to around 345 million farmers and needy people. The scheme has given much-needed employment for migrant workers by creating almost 200 million person-days of work," he added.

He said rail, road and air connectivity is being boosted.

"Our country is creating a unique digital model to build a national digital health mission. We are using the best of fin-tech to provide banking, credit, digital payments and insurance to millions. All these initiatives are being taken using world-class technology and global best practices," he said.

( With inputs from ANI )