The new policies of Mr. Narendra Modi, newly elected Prime Minister of India, open doors for Israeli companies. The World Bank is willing to invest in such projects by offering an integrated package of financing, consulting services and knowledge
There is also rising skepticism about being able to meet the increasing demand for food and energy in the country. India has pinned its hopes on the newly elected Prime Minister, Mr. Narendra Modi of the Bharatiya Janata Party (BJP), who served as Chief Minister of Gujarat from 2001 until this year. He introduced changes there, making it an attractive destination for investment, initiated infrastructure projects such as upgrading the power supply to cities and rehabilitation of groundwater and helped ‘brand’ the State of Gujarat as one that is dynamic and pro development.
Mr. Modi’s recent speech linked the saffron color of the national flag to energies, warning that the country is facing an energy crisis. He called for energy independence and stressed the need to find solutions to the crisis of global warming as well as energy consumption. According to him, India is blessed with solar energy and there are great advantages in the production of solar energy. He called for initiatives in this area and thus launched the ‘Saffron Revolution’.
The green color in the national flag symbolizes prosperity and reforms in agriculture. The meaning of this ‘green revolution’ is increasing the productivity of agricultural areas in the country. He warned against a situation in which the number of crops per hectare of agricultural area will not meet the growing demands in addition to the loss of large agricultural products (about 30%) through unsatisfactory post-harvest storage and transport. There is a need for upgrading our methods by incorporating advanced technologies.
The white color in the Indian flag symbolizes milk, said Mr. Modi. Although there are more cattle in India than anywhere else in the world, India has the lowest productivity of milk. He felt that the Indian farmers couldn’t earn a livelihood just out of cattle farming. He is of the opinion that it is important to turn to modern technology in order to look after the cattle better. If this is not done then the country will not realize its true potential in this area and that is why there is need for ‘white revolution’.
The blue color in the flag symbolizes reforms in water and fishery. The Prime Minister claimed that states in India are not doing enough to achieve their full potential in these areas, although there is a huge demand for ornamental fish in the world. Moreover, this is one area where the women of the family can be of help.
Before the financial crisis, growth in India fell more than 10%, while the GDP is less than 5% today. Mr. Modi’s economic development policies allow many opportunities for Israeli companies, particularly in agriculture and energy sectors. Israel is known to be experts in these two sectors. In this endeavor the World Bank plays a pivotal role. In order to promote the long-term economic development in India, the bank has financed the country’s infrastructure project. This is an effort to bring India on par with other developing countries.
World Bank is aware of the need to develop the economy of India and is willing to invest in projects for this purpose. It is interested in improving the Indian economy by offering an integrated package of financing, consulting services and knowledge. As of July 2013 the net liabilities in India stood at 22.3 billion dollars to 78 projects.
World Bank consists of two separate institutions:
- World Bank Development and Rehabilitation (IBRD) – The projects and focus on the interests of the middle classes.
- International Development Association (IDA) – The focus is on the poverty-stricken countries and the aim is to provide them low-interest loan.
Together, IBRD and IDA lend money for various projects to governments, which were diagnosed as having added value for the development of the country, and that meet the criteria of the World Bank for poverty relief.
A quick overview of the World Bank website shows a number of interesting projects that match the four colors of the national flag, as referred to earlier:
– A national project to support milk production – This project is valued at approximately US$ 454 million.
– Accelerated development of irrigation systems to farmers in West Bengal – This project totaling $300 million is aimed at improving agricultural production of small farmers, improving the availability of water for agriculture and fisheries, development of irrigation systems, agricultural support services, coordination and project management.
– Project Vishnugad Pipalkoti Hydro Electric – In Tz’amoli (Chamoli) in the state of Uttarakhand (Uttarakhand), increasing the supply of electricity to the national grid of India through the addition of renewable energy – hydropower. The aim is to strengthen the ability financially, environmentally and socially through sustainable energy projects. A project costs US $922 million.
Economic Attaché at the Israeli Embassy in New Delhi is working to find opportunities for Israeli companies, through export and trade promotion, attracting investments and creating strategic partnerships with foreign companies. A team is in constant contact with government institutions and representatives of the World Bank in New Delhi, and is open to assisting new entrepreneurs. In addition to this, the International Projects Division of the Israel Export & International Cooperation Institute is in constant touch with Attaches in Washington, who interact with leading financial institutions. You are invited to contact us regarding activities with the World Bank.
Embassy of Israel, New Delhi,