Assocham and the US-India Business Council (USIBC) have hailed the Indian Government’s latest economic reforms push announced on November 10.
In a press release, Assocham Secretary General Mr D S Rawat said liberalisation of FDI in a host of key sectors like defence, civil aviation, retail, banking and e-commerce will send a huge positive signal to global investors about the focus returning to the economic agenda after Bihar elections.
India remains among the few bright spots in the world, and global investors would find it compelling to seriously look at these opportunities, Rawat said. He also said that stable FDI inflows is also imperative for India in the wake of continuing uncertainty over the direction of US interest rates.
The US-India Business Council (USIBC), business advocacy organization, also issued a press release, applauding the Government’s latest reforms liberalizing FDI norms in industries that are starved for capital and enable the ease of doing business in the country.
Dr Mukesh Aghi, President of the US-India Business Council said, “Putting more FDI proposals through the automatic route is clear signal that the government is living up to the mandate of minimum government and maximum governance. India’s recent rise in World Bank’s Ease of Doing Business, the ruling on Minimum Alternative Tax (MAT), its efforts to modernize the railways network, lifting of FDI in the insurance sector are all significant achievements that will propel more investment and innovation in the country. USIBC member companies are encouraged by the Government’s efforts to undertake economic reforms and stay away from politically driven distractions.”
Emphasizing the benefit of a more open economy, Dr Aghi said, “Allowing a path to relax the norms for sourcing for single brand retailers who sell cutting edge technology will clear many of the challenges that high-tech companies have had when it comes to taking advantage of the 100 per cent opening of the single brand retail sector. In construction development, removal of two major conditions on minimum requirements area restriction of 20,000 sq. m. and capitalization of $ 5 million will provide much-needed boost to investment in the real estate development sector.”
The Council is keen on further reforms in these sectors and additional liberalization that will aid the growth of bilateral trade. Dr Aghi added, “FDI in business to e-commerce still remains restricted. As a result, smaller Indian e-commerce companies cannot seek the capital they need to grow their business and hire more employees. USIBC will continue to urge the Department of Industrial Policy & Promotion (DIPP) to allow at least 51 per cent FDI in e-commerce.” (SH)