Business
Modi, Obama unveil steps for new high to business, trade ties
New Delhi, Jan 26 (IANS) India-US business links were
set for a quantum jump with Prime Minister Narendra Modi's assurance of
"consistent policies" and "welcoming environment" leading to US
President Barack Obama announcing steps to lead to $4 billion trade with
and investment in India.
"Over the next two years, our Export
Import Bank (EXIM) will support $1 billion Made In America goods exports
to India. Our Overseas Private Investment Corporation will support
lending small and medium businesses across India in more than $1 billion
in loans. And our US Trade and Development Agency will invest nearly $2
billion in renewable energy in India," Obama said in his address at the
US-India Business Summit here Monday.
Listing out more steps, he said the US was ready to help in broadband connectivity and build better roads.
"We
need to make sure that economic growth in both India and US is
inclusive. Diaspora investment initiative will aid India," he said.
"US
exports to India is nearly 35 percent. Indian investments in our
country is growing as well. Those Indian investments are supporting jobs
across America. Our growing trade relations are also a win for India.
Both Indian and US workers are benefiting from the ties," Obama added.
Saying
that there is a lot of "untapped trade potential", he added: "PM Modi
agrees that there is a lot of scope to improve the trade relations. We
have to focus on making doing business easier in both our countries."
In
his address earlier, Modi said the state should be driven by policies
which should be consistent so as to draw more investments, while
revealing US investments in India jumped by 50 percent in the first six
months of his government.
"State should be policy-driven. That
will help investment. Consistency is another very important aspect that
will bring more investments in the country. These things will address
many problems," he said.
He assures US business that they "will find environment that is not only open, but also welcoming".
"We
will guide you and walk with you in your projects. You will find a
climate that encourages investment and rewards enterprise; it will
nurture innovation and protect your intellectual property," Modi said.
"It
will make it easy to do business; our immediate target is to bring us
from the rear ranks of the world into the top 50. You will find a tax
regime that is predictable and competitive. We have removed some of the
excesses of the past. We will now soon address the remaining
uncertainties.
Our goal is an economy where skills,
infrastructure and resources will not be constraints to growth," he
said, adding heavy investments in infrastructure and agriculture will
improve the economy.
Noting that "in the world of economics,
numbers are often an unforgiving mirror to performance," Modi said:
"They are telling us that we are on the right path. Our economic growth
has increased by a percentage point. Today, business sentiments in India
are the strongest among major Asian markets. Consumer confidence in
India has turned positive after three years.
"Growth in the eight
core sectors of the economy has increased sharply. Inflation is at a
five-year low. And, 110 million new bank accounts have opened in the
last four months. Investments from the United States have jumped by 50
percent in the first six months of my government. And, I know that some
of the pledges made in September in Washington have begun to flow in."
Stressing
the India-US partnership "will be vital for prosperity at home and our
economic leadership abroad", he held it will also help address "global
challenges of our times".
Turning to President Obama, Modi said
that with his support, "quite simply, the joined hands of India and the
United States will make this world a better place for all. With your
leadership, Mr. President, and with the support of our gifted people, we
will turn our commitments into concrete action".
The US-India
Business Council (USIBC) along with India's department of industrial
policy and promotion (DIPP), the Confederation of Indian Industry (CII)
and the Federation of Indian Chambers of Commerce and Industry (FICCI)
organised the summit.
Before this meeting, Modi, speaking at the
interactive India US CEO Forum, highlighted key priorities of his
government including improving "Ease of Doing Business", and the "Make
in India" initiative. He also added it is extremely important to listen
to investors, as this helps speed up decisions.
Reacting to the
statements by Modi and Obama, CII president Ajay Shriram expressed hope
that the newly-announced US-India Strategic and Commercial Dialogue will
convene soon to chart out the path for enhanced bilateral economic
cooperation.
He also welcomed Modi’s commitment to making the
business environment in India easier and more predictable. In this
regard, he welcomed the new cell being set up in the PMO to fast track
US investments in India.
It is these steps, he noted, that will help step up the US’s engagement in the Indian economy.