Reliance Industries chairman Mukesh Ambani on Tuesday said the slowdown in the Indian economy is temporary and the recent measures taken by the government will help reverse the trend in the coming quarters.
Speaking at Saudi Arabia’s annual investment forum, also known as ‘Davos in the desert’, the billionaire expressed confidence that the string of reforms which has been introduced by the government in the last few months will soon boost the Indian economy. “The current slowdown is temporary,” Ambani said at the opening plenary of the third edition of Future Investment Initiative (FII) in Riyadh assuring that reforms undertaken by Prime Minister Narendra Modi’s government since August will bear fruits in the next few quarters.
“The world is transitioning with the introduction of new technologies – they are transforming the global economy, and while they bring uncertainty, they also bring opportunity,” Ambani said.
“India’s slight economic slowdown will reverse in the coming quarters. What I see happening in the past 2-3 years is transformation,” said Ambani, assuring that “As a businessman and as an investor, I am all in, in terms of investing in this country.”
The Indian economy has seen a growth rate decline in each of the past five quarters. The growth rate fell to 5 per cent in April-June 2019 from 8 per cent recorded last year. The government has taken a string of policy measures over the past couple of months to shore up the economy and revive credit. The measures include attempts to ease NBFCs’ liquidity positions by encouraging banks to purchase high-quality NBFC assets through credit guarantees and additional liquidity. Also, further capital is being injected into banks and the corporate tax rate was cut to their lowest level.
It is notable here that Mukesh Ambani’s RIL is in talks with Saudi Aramco over the sale of 20% of RIL’s business in India for USD 15 billion.
Prime Minister Modi, who was also in Saudi Arabia as the keynote speaker at this year’s FII listed the attractiveness of the Indian economy and invited global businessmen to invest in the country.
PM Modi at Future Investment Initiative (FII), Riyadh (Saudi Arabia): By 2024, we aim to invest US$ 100 Billion in refining, pipelines, gas terminals. I am happy that Saudi Aramco has decided to invest in West Coast Refinery Project – which will be the largest refinery of Asia. pic.twitter.com/82FbDiq68V
— ANI (@ANI) October 29, 2019
“Political predictability, the stability of policies and a large diverse market will ensure that your investment in India will be most profitable,” Modi had said promising that he and his team will help investors.
He said the government had undertaken major reforms and would continue to take measures to boost growth. He said the roadmap for the $5 trillion economy is ready. The PM also highlighted India’s sharp improvement in the World Bank’s ‘Ease of Doing’ business ranking where it had reached to 63rd position from 142 within five years.
Prime Minister Narendra Modi had landed in Riyadh on Monday for a two-day state visit. The Prime Minister delivered the keynote address at the Future Investment Initiative and also held bilateral talks with the top leadership of the Gulf Kingdom.
A memorandum of understanding was also signed to roll out RuPay card in the Kingdom, making Saudi Arabia the third country in the Persian Gulf after the UAE and Bahrain to introduce India’s digital payment system.
Leaving with a marked upswing in bilateral relations.
— Raveesh Kumar (@MEAIndia) October 29, 2019
Ministry of External Affairs spokesperson Raveesh Kumar tweeted, “Leaving with a marked upswing in bilateral relations. PM Narendra Modi departs from Riyadh after steering the India-Saudi relationship on an upward trajectory pointing towards greater collaboration in future.”