India Global Week Summit begins today

Indian Prime Minister Narendra Modi will today speak at the virtual commencement of the India Global Week Summit. The summit

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Photo: REUTERS/Danish Siddiqui

Indian Prime Minister Narendra Modi will today speak at the virtual commencement of the India Global Week Summit.

The summit is geared towards the attraction of foreign investment to spur India’s post-COVID-19 recovery. Over 75 sessions are set to cover a wide range of topics, from trade and finance to subcontinental security. A significant portion will be dedicated to the cultivation of post-Brexit economic ties with the UK and Asia-Pacific investment in banking, manufacturing, security and technology.

India possesses the world’s third-highest number of COVID-19 cases and its economy is struggling. To date, Modi has put forward a $266 billion aid package that has done little to ameliorate the oncoming economic downturn, which could lead to a 2020 GDP contraction of 5%.

Expect Modi’s speech to stress the importance of Indian manufacturing, international business ties and bilateral security agreements, with an emphasis on UK-India ties. However, the summit is unlikely to produce any significant short-term gains as India struggles to re-open its economy in the wake of COVID-19. The meeting may produce long-term gains as global investors react to China’s recent crackdown on civil liberties in Hong Kong, which had long served as a gateway for investors to access mainland markets while circumventing Beijing’s stringent regulations. India may attempt to capture some of the resultant capital flight, which could provide a cushion in the new post-pandemic economic reality.

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