Indian Prime Minister Narendra Modi has pledged to slash red tape and harness the benefits of a huge young population as he launched a campaign to attract global business to manufacture in the sub-continent.

India's business-friendly new leader wants to revive his country's flagging economic fortunes by kick-starting a manufacturing sector long eclipsed by that of neighbouring China, said a report in the Gulf Daily News (GDN), our sister publication.

“We don't need to invite the world to India, they are ready to come. We just need to give them our address,' Modi said at the launch of his 'Make in India' campaign.

“India is the only country in the world that has the power of democracy, demographic dividend and demand,' he added, saying India's young people stood to benefit from manufacturing growth.

Modi's right-wing Bharatiya Janata Party swept to power in May on a mandate to revive the economy, which is going through its worst slowdown in two decades.

The government has already relaxed rules for foreign investors, eager to create jobs for the millions of Indians who enter the employment market each year.

But any company seeking to do business still has to contend with byzantine regulations and a stringent tax regime.

Modi said he had been 'pained' to hear stories of businesses abandoning India because of an unfavourable business climate.

“I asked my staff, 'why are government forms so lengthy?' And there was no reason,” he told an audience of business leaders.

Minister of State Commerce and Industry Nirmala Sitharaman said there was 'huge untapped potential' for manufacturing in India, which accounts for just 15 per cent of gross domestic product, far less than many other Asian nations.

“India has long been associated, unfortunately, with red-tapism and cumbersome rules and regulations. We are conscious of such perceptions,” Sitharaman said.

“We want to change that. Red tape will be replaced by the proverbial red carpet,” she said.

Modi launched the campaign hours before he was due to fly to the US, where he will meet heads of businesses including Google and PepsiCo on an official visit heavily focused on attracting investment.

The government has identified 25 sectors including automobile, aviation and construction that have potential to attract investment.

The government's manufacturing push comes at a time when many global companies are seeking an alternative to China as costs and risks there rise. - TradeArabia News Service