The US industrialists have responded positively to Indian Prime Minister Narendra Modi’s call for investment in the South Asian country, as they are planning to invest USD 41 billion in India in the next three years.
In New Delhi, a senior government official confirmed the news on Saturday, saying that the success of the PM’s US visit has paved the way for such huge investments.
The official, who wished to remain anonymous, told the ‘Times of India’ daily that Modi’s visit was basically a ‘game-changing’ one. “That is because the visit has put bilateral ties now in an altogether higher trajectory,” he said. According to the official, the PM won the confidence of the US-India Business Council (USIBC) by announcing various facilities to be enjoyed by the American investors in case of big investments in India. He also promised firm action on improving the ease of doing business in an attempt to simplify business processes and regulations in the next six months.
Modi told the American entrepreneurs: “Whatever may have been your experience in the past, good or bad, now the time has changed, intentions have changed and the objectives have changed.” He said: “Whatever may have been India’s ranking on the ease of doing business index (134), I have now told officials that I don’t want to be so low on this ranking and have given them specific parameters to improve quickly. I am trying to revive trust in India, forgetting whatever may have happened. I believe that the government has no business to be there in business. ”
Claiming that Modi’s visit to the US has marked an intersection of foreign policy priorities and domestic issues, the official stressed: “This is actually only 20% of what is expected from the US. Because of the kind of majority the PM has in Parliament and also his ability to get things done based on Gujarat model, the premier commanded a lot of respect among prospective US investors and this has done wonders for the global investor sentiment.”
Meanwhile, the Federation of Indian Chambers of Commerce and Industry (FICCI) has welcomed USIBC members’ decision to invest USD 41 billion in India. In a statement, the FICCI said that the decision is very much encouraging and it will help India become a manufacturing hub in the coming years. The Federation also considers the development as a ‘harbinger’ of transformative projects to be launched by the American and Indian private players. FICCI believes that it will further help realise Modi’s vision for manufacturing excellence.
During their recent meeting at the Oval Office of White House, US President Barack Obama told the Indian PM that Washington is eager to discuss all implementation issues, including the Indian government’s industrial projects, technical issues and licensing to facilitate the establishment of nuclear parks and power plants by Westinghouse and GE-Hitachi. The visiting Indian leader also held a breakfast meeting with 11 leading individual CEOs, including Google`s Eric Schmidt, The Carlyle Group’s David M Rubenstein, Citigroup’s Michael Corbat, Caterpillar Inc’s Doug Oberhelman, AIndra Nooyi of Pepsico and AMicheal Ball of Hospira Inc – a US-based global pharmaceutical company – and Merck and Co’s Kenneth C Frazier.