William Lee, the Chief Economist at the Milken Institute, has said that India must build stronger institutions—especially in governance and legal systems—if it wants to attract long-term global investment. According to him, just focusing on innovation is not enough.
Lee explained that global investors look for credibility, legal protections, and a history of reliable returns. They want to know that their capital is safe and that the rules are clear and fair. Without these, even exciting innovations may not be enough to bring in serious global money.
He pointed out that countries like the United States remain attractive to investors not just because of profits but due to strong legal and governance systems. These systems give investors confidence, even when companies like Tesla face periods of weak earnings.
Lee also noted that global capital is now flowing back into the US because of its productive economy and advanced technology. He cited Donald Trump’s recent speech on artificial intelligence, which he saw as a clear sign of government support for the tech sector through partnerships with Silicon Valley firms.
Finally, Lee mentioned that Trump’s trade policies are encouraging countries to invest in the US and lower trade barriers. This has led countries like Japan and South Korea to adjust their economic strategies to remain in Washington’s good books and gain better trade deals.
In short, Lee believes India needs more than innovation—it needs trustworthy institutions to truly attract and retain global capital.
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