India needs to review ESG factors to attract major investors and sustained FDI: USISPF

India needs to look at Environmental, Social and Governmental – ESG factors in attracting investors and getting the desired Foreign Direct Investment (FDI), says Mukesh Agni, president of US-India Strategic and Partnership Forum (USISPF). Agni told PTI that if India wants to focus on attracting large scale, long term institutional investors, it needs to look at the ESG factors. “Today, India is around 130-133 on the ESG factors. It needs to start coordinating, its no longer World Bank ranking on the ease of doing business,” he said. “Investors are rewarding companies that are looking at ESG factors.”

The head of the Indian-centric American business advocacy group pointed out that institutional investors are looking at ESG factors of nations itself as they increase their share of investment into that environment. Agni said it’s vital for India to look at that aspect seriously. “And, when you look at, if the Democrats come in power in the US, those factors will also play a stronger role than the current administration,” he explained. “India needs to look at ESG factors to attract major investors and get the massive and sustained foreign direct investment of US$100 billion per annum that the country needs to get back to eight or night per cent growth.”

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Agni shared that the USISPF will be hosting its week-long third leadership summit, later this month, which would be addressed by the US Vice President Mike Pence and India’s External Affairs Minister S Jaishankar. “We will reflect on the last three and a half years, but we have to also look at the next four years,” he said. “With America’s trade relationship getting more and more stressed out, India can play a helpful role for the US and its companies, especially in the healthcare sector,” Agni said the focus of the India-US ties should also be on technology.