Bright minds in India are debating over the economic growth in the first three years of Prime Minister Narendra Modi’s government but United States India Business Council (USIBC), a top American advocacy group representing US business interests in India, on Wednesday (24 May) said that the country is open for business and reforms are also on-track.
USIBC is a business advocacy organisation which efforts to boost the private sectors of both India and the US to enhance investment flow among the two countries. The organisation represents more than 300 American businesses.
As per a report by Press Trust of India, Mukesh Aghi, president of USIBC, said, “Liberalisation across numerous sectors of the economy sends a message to the global investment community that India is open for business and reforms are on-track. Implementation of reforms such as the goods and services tax and the bankruptcy code are tremendous legislative and political wins. Demonetisation was also necessary to act upon corruption and black money.”
He sees Modi as a leader who could make “bold” and transformative decisions. “In the last three years, the Prime Minister has demonstrated that he is able to make bold, transformative decisions that will transform how India is perceived on the global platform,” Aghi said.
Aghi also appreciated India’s healthy macro-economic figures like inflation which saw a substantial dip (pegged at about 2.61 per cent in March) and positive growth in foreign direct investment (FDI). FDI from the US into India stood at Rs 110,532 crore between April 2000 and March 2017, according to government data.
However, he also noted that job growth in India has been abysmal and the government needs to focus its attention to this aspect. He added that private investments in India are also an area of concern for the government.
“Make in India will need a boost as well as does private investment. Industry looks forward to furthering clarity and consistency in policy framework and that India continues on its path towards liberalisation,” Aghi said.
He also expressed optimism on ‘strong bipartisan support for the bilateral relationship’ with India. Recently, US treasury secretary Steven Mnuchin also underscored India’s importance as an economic partner of the US.
