From K J M Varma

Beijing

As Prime Minister Narendra Modi embarks on a maiden official visit to Europe which aimed at wooing foreign investments, China’s official media today said “roaring labour costs” in stricter environmental regulations in the country may push investors to eye India.

“In fact, the roaring labour costs and stricter environment regulations in China have pushed enthusiastic investors to look away and eye India as a more desirable destination, particularly those from small- and medium-sized businesses,” state-run Global Times reported.

Besides, the widespread English proficiency in India also gives a fillip to the interests of foreign investors, state- run think tank, the Shanghai Institute of International Institute, said about Modi’s visit which included inauguration of the Hannover Messe, a famous engineering fair in which India is a partner, with German Chancellor Angela Merkel.

It said the next two years will be critical for India as the country is predicted to have the economy grow by 8.1 to 8.5 per cent in the 2015-16 financial year despite the global economic slowdown, and in the process foreign investment is critical.

“Once the prediction can be realised, it will send considerably an encouraging message to the Western countries,” it said.

“Although there have been many meetings and visits between India and the EU, such as regular business summits over the past decade, their talks have hardly translated into actual outcomes and no considerable European investment has been made in India. One reason is India’s slow moving on infrastructure improvement,” it said.

“A dramatic improvement in India’s relationship with Europe and remarkable progress in their economic cooperation is unlikely to happen just through one visit. There won’t be big strides forward in India and changes have to take place slowly and gradually,” it added.

In his maiden visit to the European nation as Prime Minister, Modi will have a packed schedule and wooing investors and projecting his ambitious “Make in India” initiative will be a major focus area.

Modi will hardshell India as an attractive investment destination while deliberating with movers and shakers of global business at the Hannover Messe during his three-day trip to Germany beginning Sunday, besides holding talks with its top leadership.

PTI