With the advent of Prime Minister Modi, a new era has dawned in India, says Onno Ruhl, former director of the World Bank in India. "It is time for Dutch companies to wake up and start seizing opportunities in India."
Photo: Praveen Khanna
Is India a superpower? "Without a doubt," laughs Onno Ruhl on the phone from Geneva. "You don't have to be a genius to do that. India is already the third largest economy in the world. Add to that an annual growth rate of 7.5% for the next decade - a conservative forecast - and you know it. The Indian train has left and you better jump on it now, because you don't want to miss this train." Onno Ruhl knows what he is talking about. From 2012 to 2016, as director of the World Bank in India, he witnessed at close quarters the major political turnaround in the country: the accession of Narendra Modi. Ruhl: "Modi is the first prime minister to focus explicitly on modern India, on Indians living in the city. That sounds logical, but it's completely new in India. Until 2014, all politics is rural.
Making it easier to do business
The modern India needs a government that empowers business. Ruhl: "Modi is making real efforts to tackle the bueaucracy. He has instructed his officials to facilitate business rather than just control it. The new e-visa system is an example of this. You can now have an e-visa within 24 hours, a relief compared to before. He is also aggressively fighting corruption and simplifying (tax) regulations. Modi is the first Indian leader to take the World Bank's Ease of Doing Business Index seriously." That is not to say that everything is suddenly much easier now, Ruhl realises. "But Modi has succeeded in changing the ideology. All states recognise that they need to improve their investment climate in order to attract businesses and create jobs. They are openly competing with Gujarat, the state known for its attractive investment climate and where Modi was Chief Minister before becoming Prime Minister. The genie is out of the bottle."
Mercedes and medicines
There are enormous opportunities for Dutch companies in India, Ruhl says. "India is facing enormous challenges in the field of agriculture, water, waste and energy. The country needs our expertise and our smart and efficient technologies, but Dutch companies should not wait until Indians come knocking on the door. Otherwise, German, British or Danish companies with a strong presence in India will run away with the contracts." India is not just a market to be added to in 2017, Ruhl warns. "India requires a strong level of ambition from Dutch companies. You don't go to India for one or two contracts. Companies here usually enter into partnerships with serious national players, which often result in part of the production shifting to India in the long run. Make no mistake, the production here is very sophisticated. Modi's Made in India campaign is not about the production of beautiful scarves, but about high tech like Mercedes cars and medicines."