'We've got to do better', says US President Barack Obama on trade with India
New Delhi: US President Barack Obama and Prime Minister Narendra Modi met around 50 top business leaders at the CEO's meet at Taj Palace hotel on Monday.
Interacting with top CEOs, PM Modi said that the solution to all problems of the industry was good governance that is pro-people.
“PMO will monitor all big projects. To boost purchasing power in India, need to improve economy and only way to improve is heavy investment in infrastructure and agriculture,” said Modi
He also said that his government has taken the initiative of make business easy in the country to attract investments.
“Policy driven state with consistency will solve many problems. Pro-people, good governance is the solution. Issues that you have flagged is good for me to know, helps to know how investors feel about how govt should work. I am confident we will bring positive outcomes from our 'ease of Business' initiative,” Modi added.
Stressing on investments, Modi said that he sees a lot of growth in the infrastructure sector.
“We can work on tourism sector. You have heard that Gujarati people are everywhere, Hotel, Motel and Patel. India has tremendous scope for service sector, tourism is an untapped sector,” he said.
PM said, “My top 3 priorities are: Skill, Scope and Speed. Economy has to grow to increase purchasing power.”
Obama said to the CEOs that the good news is that Indo-US trade in the last few years has increased by 60 per cent.
"I am excited that not only is the US investing in India but a lot of Indians are investing in the US," Obama said.
Trade and economic issues, including visas, the totalisation agreement and impediments hampering investments are expected to top the agenda at the meeting.
Finance Minister Arun Jaitley was also present for the meeting, which will focus on Modi's 'Make In India' campaign and on ease of doing business.
Later, while addressing the Indo-US Business Summit, Obama stressed on increasing trade with India, saying that it was important for both countries to tap each other’s potentials and work together.
“We have agreed to resume dialogue on bilateral investment treaty. We do $100 billion trade with India but $560 billion with China.”
He also said that he was excited not only is the US investing in India but a lot of Indians are investing in the US.
He also said that it was important for both countries to foster a transparent business environment.
“Must keep working towards making business between India and US easier. Need to be fostering a business environment that is consistent and more predictable,” said Obama.
He also said that India and US have taken a big leap in defence cooperation and have agreed to resume dialogue on bilateral investment in India.
“We have to keep working to cut red tape, streamline regulations so that more companies set up shop in America. Here is India there are still many hoops to jump through,” he said.
Stressing on growth, he meant that it isn’t only restricted to numbers or GDP, but needs to make people’s lives better in real and tangible ways.
“Can work together to develop new technologies that will help India move forward. Growth has to make people's lives better in real and tangible ways. Have to make sure economic growth in India and US is sustainable.”
The US President announced USD 4 billion investment in India including USD 1 billion for financing exports from US to aid Make-in-India programme here, a similar amount for small and medium industries and USD 2 billion in renewable energy projects.
Speaking alongside Obama, PM Modi promised an open business environment, predictable tax regime and to remove "remaining uncertainties" as President Barack Obama raised issues of trade barriers and intellectual property while seeking ease of doing business in India.
Modi asserted that his government has removed some of the "excesses of the past" and said, "we will now soon address the remaining uncertainties", an apparent reference to the retrospective taxation law of the previous government that put off global investors.
"You will find an environment that is not only open but welcoming, we will guide you and work with you on your projects," said Modi.
"You will find a climate that encourages investment and involves enterprise," added the PM.
"You will find a tax regime that is predictable and competitive."
Modi acknowledged that the tax rules had been too harsh and that he planned to lessen the burden.
"We have removed some of the excesses of the past. We will soon address the remaining uncertainties," said the prime minister, who also promised to address concerns about intellectual property.
"It (the new business climate) will nurture innovation and protect your intellectual property," added Modi.
India-US leaders now at CEO Forum. pic.twitter.com/8eUQAQYeEm
— Syed Akbaruddin (@MEAIndia) January 26, 2015Members of India Inc included Reliance Industries Chairman Mukesh Ambani, Bharti Enterprises chief Sunil Mittal, ICICI Bank MD & CEO Chanda Kochhar, Reliance Group Chairman Anil Ambani, Infosys CEO Vishal Sikka, Adani Group head Gautam Adani, Shashi Ruia, Chairman of Essar Group, Mahindra & Mahindra Chairman Anand Mahindra, Hari Bhartia, Co-chariman and and Director of Jubilant Life Sciences, Biocon Chairman and MD Kiran Mazumdar-Shaw and Sudhir Mehta of Torrent Pharma.
State Bank of India Chairman Arundhati Bhattacharya, Oil and Natural Gas Corp (ONGC) Chairman and Managing Director Dinesh K Sarraf and BHEL head B Prasada Rao also were part of the 17-member Forum.
The US team included Indira Nooyi of Pepsico, Harold McGraw, Chairman McGraw Hill Financial and Ajay Banga, CEO Mastercard.
India has already relaxed foreign investment caps and norms in various sectors including defence, insurance and pharmaceuticals. It also took a slew of other initiatives with a view to improving the business climate and attract foreign investment.
The bilateral trade between the countries stood at USD 61.64 billion in 2013-14. India has received USD 13.28 billion FDI from the US between April 2000 and November 2014. America is the sixth largest investor in India.
