Prime Minister Narendra Modi's "trips and promises" to attract foreign investment can yield desired results only when India improves its domestic environment for investors, Chinese media said today.
"Although Modi has been travelling all year long, and delivered some fruitful diplomatic results, the biggest lesson is how to improve the country's domestic environment for investors after all these trips and promise." Despite the fact that Modi's government has brought in a series of measures to appeal to investors, such as establishing special economic zones, free tax zones and free trade areas, some of these efforts have come up against resistance of local governments.
"They hold great control over adopting policies for local economic development," it said. "Whether Modi can bring enough inflow of foreign capital for India is crucial for the country's development," it said. "India has been experiencing anaemic growth since the economic crisis in 2008. In the meantime, the government is short of money for development. Introducing foreign investments is therefore the only way to reach its economic growth targets," it said.