Obama visit: IT, pharma industry expect boost for ‘Make in India’
New Delhi: Industries are expecting that the visit of the US president Barack Obama will boost the ‘Make-in-India’ endeavour of the Modi government and give a leg up to India’s overall image in the global investment community leading to further funds flow into the country.
However, exporters including IT industry and the pharma is expecting that the controversial issue of visa restrictions and problems faced with the US Food and Drug Administration (USFDA) will also come up for discussion and some way ahead is achieved during Mr Obama visit.
“US president visit should be taken as an opportunity to make them interested in investing more in Make-in-India programme of the government, infrastructure and the skill development,” D S Rawat secretary general, ASSOCHAM told this newspaper.
With manufacturing seeing a contraction in the last fiscal year for the first time in 25 years the government is trying to revive it with campaigns like ‘Make-in-India’.
“United States can be a great partner in reinventing technology driven manufacturing in India with American know-how. With the new government rapidly simplifying the bureaucratic procedures, instituting long-overdue market reforms and implementing fair, effective, and transparent processe to attract foreign investments, US cooperation and investment in building India will create a win-win situation for both,” said apex industry chamber CII.
Other area where US companies could help is in bridging the huge investment needs for country’s infrastructure. It is estimated that India needs an investment of $ 1 trillion between 2012-17 in the infra sector. Around half of amount is estimated to come through private/PPP mode. US private equity funds can acquire a stake in operational infrastructure assets in the country and share their experience in value and quality of the infrastructure assets.
Government has launched an ambitious plan to build 100 smart with any initial investment of 1.1billion to address India’s overcrowded urban environment. “US companies can play a leading role in providing expertise and supporting sustainable infrastructure development in Ajmer, Allahabad and Vizag—the 3 cities so far identified for development by US firms,” said CII.
Meanwhile exporters are expecting break through on the problems faced by the pharma industry and IT during Mr Obama visit.
“We are expecting that the issue faced by the pharma industry is going to be addressed during the US president visit. Pharma is going to be major talking point after defence,” said exporter’s body FIEO president M. Rafeeque Ahmed.
After India’s image took a knocking down during UPA II regime due to retrospective amendment in Income Tax Act 1961 and GAAR, industry is hoping that US president visit will again make the country seen as the place to be in and generate greater interest from the investors community.
