Mumbai, February 13

Indian Prime Minister Narendra Modi renewed his call today for firms to invest in India and turn it into a global manufacturing hub, painting the country as a bright spot for investment in an uncertain world economy.

Modi was addressing a gathering of industry leaders, CEOs and foreign dignitaries in Mumbai to mark the start of ‘Make in India’ week, which runs until February 18.

The glitzy showcase is part of a drive to convince foreign firms to take advantage of cheap Indian labour and invest in factories in the country as rising wages make traditional hubs more expensive.

“This campaign has the capacity to boost India’s economy and also brighten global scenario,” Modi said. “This century is Asia’s century. My advice to you is to make India your centre if you want this century to be your century.”

The Hindu nationalist leader faces a huge challenge in persuading foreign firms — many of which still eye India’s labyrinthine bureaucracy, complex regulations and poor infrastructure with suspicion — to invest in the country.

He is seeking to attract foreign direct investment (FDI) into 25 key sectors, from traditional industries such as leather goods to high-skill areas such as defence manufacturing. Today, he said FDI had increased 48 per cent since his government took power in May 2014, with December recording highest monthly inflows ever.

Earlier in the day Modi met with foreign leaders including Swedish PM Stefan Lofven and Finland’s PM Juha Sipila and officials from Germany, Japan and Poland.

Chief Minister of Maharashtra, Devendra Fadnavis, said in a speech he sought to turn Mumbai into international financial services centre, describing his state as a national powerhouse of FDI.

Indian officials often lament their country missing the boat on manufacturing, while China’s drive to skill its vast, low-wage workforce to make goods for the west powered its economic boom.