India Becomes Key Hub for Diversification and De-Risking, Says PM Modi

Team Finance Saathi

    13/Feb/2025

What's covered under the Article:

  1. PM Modi highlights India as a key hub for diversification and de-risking at France CEO Forum.
  2. India targets 100 GW of nuclear power by 2047, focusing on SMRs and AMRs for private sector growth.
  3. Dr. S. Jaishankar stresses deeper India-France collaboration in supply chains, defence, and aerospace.

India is rapidly emerging as the biggest hub for diversification and de-risking, attracting global investors with its robust economic policies, growing manufacturing sector, and strategic global partnerships. During his address at the 14th India-France CEO Forum in Paris, Prime Minister Narendra Modi underscored that now is the best time to invest in India as it strengthens its position as a preferred investment destination.

He highlighted India’s strong collaboration with France, particularly in the defence, energy, and technology sectors, and applauded the success of the AI Action Summit, which he co-chaired with French President Emmanuel Macron. This summit reinforced the growing technological collaboration between the two nations, focusing on artificial intelligence-driven innovation.

A significant highlight of PM Modi’s speech was India’s ambitious target of achieving 100 GW of nuclear power capacity by 2047. This includes a special focus on Small Modular Reactors (SMRs) and Advanced Modular Reactors (AMRs), which offer sustainable and scalable energy solutions. By prioritizing clean energy and nuclear advancements, the Indian government is encouraging private sector participation in the energy revolution.

India’s Strategic Role in Global Supply Chains

The push for de-risking supply chains was echoed by Union Minister for External Affairs Dr. S. Jaishankar, who emphasized the urgent need for resilient and reliable supply networks. Addressing corporate leaders from India and France, he called for a shift from a buyer-seller dynamic to co-designing and co-production partnerships, particularly in defence manufacturing and aerospace.

One of the major highlights of his speech was India’s role in the India-Middle East-Europe Economic Corridor (IMEC), a transformational trade initiative designed to streamline global trade routes. He also pointed out that India's infrastructure landscape is evolving rapidly under programs like Gatishakti, which focuses on seamless multi-modal connectivity to enhance logistics efficiency.

The ‘Make in India’ Initiative and India’s Growing Global Influence

As part of the ‘Make in India’ initiative, Dr. Jaishankar urged businesses to move beyond traditional trade models and actively participate in co-development and manufacturing projects. He emphasized the importance of value-based collaborations and trust-driven partnerships in accelerating bilateral trade and investment.

With India-France relations growing stronger, there is tremendous potential for expanding business ties across technology, aerospace, energy, and defence sectors. Dr. Jaishankar noted that the current level of trade and investment between the two nations remains below its potential and urged business leaders to accelerate engagement.

As India cements its position as a global economic powerhouse, the country’s strategic focus on nuclear energy, AI, defence collaboration, and infrastructure development is expected to drive growth and attract foreign investments.

For investors looking for new opportunities, India's commitment to diversification and de-risking presents an unmatched investment potential.


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