“Red tape to red carpet”: PM Modi on Indian economy at G20 meet

While addressing the G20 nations on Thursday, India’s Prime Minister Narendra Modi claimed that the country had transformed from a “red tape” to a “red carpet” economy and had allowed unrestricted FDI inflows over the previous nine years.

PM Modi urged the G20 member nations to “build a resilient” and “inclusive global value chain that can withstand future shocks” in a virtual speech to the G20 Trade and Investment Ministerial Meeting on Thursday.

“We have moved away from red tape to red carpet and liberalised Foreign Direct Investment (FDI) flows. Initiatives like ‘Make in India’ and ‘Atma Nirbhar Bharat’ have given a boost to manufacturing. Above all, we have brought policy stability. We are committed to making India the third-largest global economy in the next few years,” PM Modi said.

The G20 has been “tested” by the current global issues, he continued, citing everything from the pandemic to the “geopolitical tensions” as examples.

PM Modi welcomed representatives of the G20 nations to Jaipur and said the city is known for its vibrant and enterprising citizens.

“Throughout history, trade has led to an exchange of ideas, cultures and technology. It has brought people closer,” PM Modi added.

He claimed that hundreds of millions of people have escaped terrible poverty thanks to trade and globalisation. “At this time, the Indian economy is seen with hope and confidence worldwide. “Openness, opportunities, and options are all associated with India,” PM Modi stated in his virtual address.

The BJP-led National Democratic Alliance (NDA) government at the Centre has been in power for nine years, during which time India has grown to be the fifth-largest economy in the world.

“This is the result of our sustained efforts. We embarked on the journey of reform, performance and transformation in 2014. We have increased competitiveness and enhanced transparency,” he added.

“We have expanded digitisation and promoted innovation. We have established dedicated fit corridors and built industrial zones,” PM Modi added.

He also urged G20 participants to restore faith in global investment and commerce.

“We must build resilient and inclusive global value chains that can withstand future shocks. In this context, India’s proposal to create a generic framework for mapping global value chains is important,” PM Modi said.

According to him, this methodology intends to evaluate vulnerabilities, reduce risks, and improve resilience.

Concluding his address, PM Modi said, “Technologies’ transformative power in trade is undeniable. India’s shift to an online single direct tax, the Goods and Services Tax (GST) helps create a single internal market boosting inter-state trade.”