India recently outlined the scale of its economic vision – to turn into a U.S. $5tn economy by 2025. The scale of the challenge is considerable, requiring sustainable growth of 8% over the next six years. Achieving this target will be difficult, but if India continues to increase its attractiveness as a destination for foreign investment, it is possible.
To reach this ambitious target, India must build on the progress made recently in improving its business environment, making a 79 place improvement in Ease of Doing Business rankings to reach 63rd position in five years. The CBI’s new report sets out a seven-point plan to catalyse progress on improving India’s business environment and its implementation is key to unlocking the Indian market for British companies through easing foreign operations in India.
The report asks the Government of India to:
- Take advantage of the opportunity created by a stable majority and strong political capital enjoyed by the government to build consensus on further reforms to improve the ease of doing business
- Prioritise reforms which have a multiplier effect, and which would have a big impact on specific indicators in the Ease of Doing Business Rankings
- Harmonise domestic standards with international standards to reduce technical barriers to trade.
Key highlights from the report
- The scale of the economic partnership between the UK and India
- What British businesses think about the Indian economy
- Practical measures which would immediately improve the business environment in India
- The size of the prize – growing economic ties between the UK and India.
As the Indian Prime Minister Narendra Modi himself remarked, the UK and India together are an “unbeatable combination”. This report outlines a plan to make the combination even more compelling.