Branding for Investment
The World Bank’s ‘Doing Business’ report in which India has scaled up from 142nd rank in 2014 to 63rd position in 2019, reflects that Brand India is becoming increasingly attractive for investors. This has also paved the way for idea of state branding in recent years. Be it ‘Vibrant Gujarat, Sunrise State of AP, Resurgent Rajasthan, Credible Chhattisgarh, Happening Haryana or Odisha-New Opportunities’, states are competing to brand themselves as better investment destinations. The new thrust on state brand identities indicate the growing aspirations reflected in the public domain through print, digital, social media, television, radio and other channels used for branding. State branding campaigns are targeting both domestic as well as global investors because investments from foreign(FDI) and domestic investors play a very important role in the development of countries and states. It is the flow of investment which is reshaping the economic landscape of states considerably.
Why do states attract Investors?
Increased investments boosts the industrial activities in all sectors including the services sector. This in turn creates jobs, and helps reduce unemployment. One very important feature of increased industrial activity is that they train the employed workers and make them further employable with extra set of skills. Increased employment translates to increased incomes, and equips the population with enhanced buying power. This gives an impetus to the economy as a whole. Investment not only drives jobs, but it also increasingly drives trade, innovation, modernization and infra-structure development. It helps create a more competitive business environment and strengthens enterprise development. Owing to its multifarious advantages, individual Indian states actively promote themselves to foreign businesses as a destination for FDI. State Chief Ministers are especially eager to attract foreign investment to their states– and many of them travel widely to showcase the advantages and attractions of their states that would ensure high returns for the investors. They are also taking keen interests in organizing regular investors summits to woo the investors. Events like 'Vibrant Gujrat', 'Vibrant Goa', have become prominent part of states' annual calendar, for the same reasons.
What makes a state an attractive investment destination for investors?
Reform-minded governments which ensure within their mandate— the rule of law, respect for the rights of investors, and a judicial and regulatory process free of arbitrary government interference, stronger intellectual property rights protection, and better investor aftercare and dispute prevention. It is easier to attract foreign investment when foreign and domestic firms can compete on an equal playground and when there are full intellectual property rights protections.
The World Bank has developed a ranking of countries based on Ease of Doing Business (EODB). The Government of India is amongst few nations that rank all Indian states on the same parameters as the global rankings. Similarly, India Innovation Index on lines of Global Innovation Index, ranks Indian states by looking into their innovation ecosystems. Such rankings have also necessitated states becoming more conscious about their ‘brand image’ in recent years. The EODB ranking motivates states to have a single-window system that provides all necessary information on permits and licenses required for starting a business. This is the reason that most of the states have dedicated websites (e.g https://investharyana.in of Haryana, http://investpunjab.gov.in of Punjab) which aim at one stop information and approval hub for investors.
In addition to the EODB criteria, access to qualified and skilled talent, robust infrastructure, flexibility of relevant regulations and laws, low cost of doing business, etc. too play a decisive role in branding a state as business-friendly. Thus states aspiring for the top position amongst investment-friendly states, need to continuously work for their positive brand identity, develop a robust brand image and reposition itself as the competitive brand.
-shadan zeb khan
What makes a state an attractive investment destination for investors?
Reform-minded governments which ensure within their mandate— the rule of law, respect for the rights of investors, and a judicial and regulatory process free of arbitrary government interference, stronger intellectual property rights protection, and better investor aftercare and dispute prevention. It is easier to attract foreign investment when foreign and domestic firms can compete on an equal playground and when there are full intellectual property rights protections.
The World Bank has developed a ranking of countries based on Ease of Doing Business (EODB). The Government of India is amongst few nations that rank all Indian states on the same parameters as the global rankings. Similarly, India Innovation Index on lines of Global Innovation Index, ranks Indian states by looking into their innovation ecosystems. Such rankings have also necessitated states becoming more conscious about their ‘brand image’ in recent years. The EODB ranking motivates states to have a single-window system that provides all necessary information on permits and licenses required for starting a business. This is the reason that most of the states have dedicated websites (e.g https://investharyana.in of Haryana, http://investpunjab.gov.in of Punjab) which aim at one stop information and approval hub for investors.
In addition to the EODB criteria, access to qualified and skilled talent, robust infrastructure, flexibility of relevant regulations and laws, low cost of doing business, etc. too play a decisive role in branding a state as business-friendly. Thus states aspiring for the top position amongst investment-friendly states, need to continuously work for their positive brand identity, develop a robust brand image and reposition itself as the competitive brand.
-shadan zeb khan
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