Red tape and corruption coming down under current govt, India becoming attractive investment hub: Former WEF Director

New Delhi [India], April 12 : Frank Jurgen Richter, former Director of the World Economic Forum and Chairman of Horasis, said that under the current government, red tape and corruption in India are coming down, making the country an increasingly attractive destination for global investment.

In an exclusive conversation within Delhi on Sunday, Richter said that significant improvements have taken place in the business environment, with administrative processes becoming simpler and more efficient.

"Since this government has been in power, a lot of things have changed. For example, red tape and corruption are coming to a minimum, and I think it's a very positive change we're seeing. Setting up businesses and the whole administration is much simpler," he said.

He emphasised that India should continue on this trajectory and further open its economy to foreign direct investment (FDI), which would help strengthen its growth story.

"I think the economy should continue like that and welcome foreign direct investment," he added.

Richter noted that multiple sectors are opening up, creating new opportunities for global players. He highlighted that even areas such as legal services are becoming more accessible, with foreign law firms now able to enter without requiring a joint venture partner.

"We see that many sectors are opening up, especially law firms, which can now come in freely without a joint venture partner," he said.

Richter also said that India continues to stand out as a key growth market, with strong investor interest.

"They are bullish on India, definitely, as a growth market. We see a lot of investment here, and actually across all states," he said.

He also highlighted a shift in how foreign investors view India. Earlier seen as a single large market, investors are now exploring opportunities at the state level, recognising the presence of specialised growth centres.

"In the past, foreign CEOs saw India as one big market, but now they realise they need to go beyond Delhi and engage with states, where centres of excellence are emerging," he said.

Citing Andhra Pradesh under Chief Minister N Chandrababu Naidu as an example, he pointed to investments in advanced technologies such as quantum computing and the emergence of innovation ecosystems similar to Silicon Valley.

He stated, "Silicon Valley-type structures are emerging here in India. Of course, Mumbai is a financial centre potentially of the whole of Asia, and India is definitely good news".

He further described Mumbai as a potential financial hub for Asia, highlighting India's growing importance in the global economic landscape.

On the technology front, he stressed the need for companies to adopt an "AI-first mindset" and adapt to the fast-changing global landscape driven by artificial intelligence.

At the same time, Richter pointed out that global CEOs are currently facing uncertainty, which is affecting investment and hiring decisions.

"Global CEOs face uncertainty. In such situations, they hold back on investment. They continue operations but may stop hiring. There is a freeze in hiring in many industries, while some are even laying off employees," he said.

He added that even in the US IT sector, job disruptions are expected as AI takes over certain roles, creating a dilemma for companies on how to move forward.

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