Article Posted on : - Feb 12, 2025

Defence Minister Rajnath Singh addresses a gathering during the Global Investors' Meet, in Bengaluru, Tuesday, Feb. 11, 2025. A PTI Photo

BENGALURU (PTI): Defence Minister Rajnath Singh said India has rolled out red carpet, and not red tape to investors and that there is broad consensus for sustainable economic development in the country.

Inaugurating Invest Karnataka-2025 meet here on Tuesday, he said India has addressed the crucial point of policy uncertainty by creating a stable and predictable policy environment.

Congress president Mallikarjun Kharge and former party chief Rahul Gandhi did not attend the inauguration in view of Parliament's Budget session. AICC general secretary, communications, Jairam Ramesh said both leaders are tied up in Parliament for the debate on the budget and have sent their best wishes to the Karnataka government.

Similarly, Union Minister and former Karnataka Chief Minister H D Kumaraswamy also expressed his inability to attend the event citing the ongoing Parliament session.

At the event, Singh said, "When I speak about the policy uncertainty, I want to emphasise a crucial point."

"Today across all governance level in India, including the central government, state government and local bodies, there is a broad consensus that sustainable economic development must be driven by a market-led economy with the private sector playing a leadership role," he said.

According to him, the shared commitment of sustainable economic development provides a stable and predictable policy environment ensuring that investors can invest with confidence in policy continuity.

Singh said in the past investors faced numerous challenges and one of the biggest hurdles was red tape, but now the time has changed.

"Today, India no longer presents red tape to investors. Instead, we roll out the red carpet for them. This kind of cross party consensus on promoting investment plays a crucial role in reducing uncertainty for our investors," the minister pointed out.

Singh said the Central and state governments have worked actively to address the challenges that investors previously faced.

One of biggest concerns for any investor before making an investment is uncertainty. "Investors worry that they might invest in a promising sector today, only to face unexpected policy changes later, which could disrupt their plans and profits," he said.

This issue of uncertainty is not just limited to India, but it is a global challenge which affects investment decisions everywhere, Singh pointed out.

The cumbersome process of obtaining multiple clearances has been replaced by a single-window system ensuring a faster and a hassle-free experience, he underlined.

Stating that investors also need a strong market demand for their products, Singh said when it comes to consumption, India is already one of the fastest growing markets in the world.

He also highlighted that several economic decisions are expected to strengthen the demand environment. In this context, he recalled that the RBI recently reduced the Repo Rate from 6.5 per cent to 6.25 per cent making borrowing more affordable.

The GOI has also introduced a massive income tax cut in this year’s budget, he said adding, this significant tax relief will substantially increase the disposable income of people.

Singh told the investors who had gathered from various parts of the world that Karnataka offers everything one seeks in an investment destination.

"No matter what your investment requirements are, Karnataka provides a good foundation for growth and success," he said.

"As an investor, you seek a world-class infrastructure and Karnataka is offering next generation infrastructure facilities. If you require skilled human resources, Karnataka stands out with its highly talented future ready work force," the minister said.

According to him, one of the most compelling elements of his value proposition was to ask investors to invest in Karnataka.

He was optimistic that in the near future Bengaluru will give India its first foundational Artificial Intelligence model.

Singh said investing in Karnataka would mean gaining strength of the entire nation as India’s economic ecosystem is deeply integrated which means investing here gives you access to the country’s vast and diverse resources and colossal talent pool.

He also said that when Prime Minister Narendra Modi was the Chief Minister of Gujarat, he pioneered the tradition of hosting investors’ summit. Today this tradition has been embraced by almost every state in India, which is a positive development of our economy, he added.

Chief Minister Siddaramaiah, his deputy D K Shivakumar, Karnataka Large and Medium Industries Minister M B Patil, Union Minister for Food and Civil Supplies Pralhad Joshi and Karnataka Chief Secretary Shalini Rajneesh were among those present on the occasion.

Mahindra and Mahindra Group chairperson Anand Mahindra, JSW Group chairperson Sajjan Jindal, Biocon chairperson Kiran Mazumdar Shaw, Kirloskar Systems chairperson Geetanjali Kirloskar, Hero Future Energies chairperson Rahul Munjal attended the event.

Meanwhile, JSW Group Announces Rs 1.2 Lakh crore investment at the conclave.

JSW Group Chairman Sajjan Jindal reaffirmed the company's deep-rooted commitment to the southern state.

"The investment, spanning steel, energy, infrastructure, cement and paints, aims to bolster Karnataka's industrial and economic landscape while creating thousands of employment opportunities," a company release said.