There is recognition of the role India can play in the years to come; increasing involvement of industry members highlights the fact that our business communities can reach higher heights through strategic co-operation and collaboration: Mr Adi Godrej
The Indian Government’s decision to open up multi brand retail to FDI of up to 51 percent and the lifting of FDI caps in single brand from 51 percent to 100 percent is a welcome step and an assurance to the investors: Mr Ajay Banga, Chairman, USIBC
CII – USIBC (US India Business Council) Leadership Exclusive Session took place here today. The high profile interaction was attended by over 20 top veterans from the Indian industry.
Speaking at the exclusive Session, Mr Adi Godrej, President, CII, said, “Indo – US trade is now touching almost $100 billion after years of patience and persistence. Achieving our next $500 billion target entails charting out a larger strategy of engagement – one where both sides commit against protectionism, create enabling frameworks such as the Bilateral Investment Treaty, recognize the value of labour mobility, focus on enhancing services trade, focus on investments and value addition, and definitely get down to industry – level and state level co-operation.”
Mr Godrej also stated, “There is recognition of the role India can play in the years to come, which is evident from the growing array of focussed and sector specific official dialogues initiated by both countries in the recent past, such as in higher education and energy. Increasing involvement of industry members at these platforms highlights the fact that our business communities can reach higher heights through strategic co-operation and collaboration.”
Mr Ajay Banga, Chairman, USIBC and President & CEO, MasterCard, drew attention to the opening up of the Indian economy and observed, “The Indian Government’s decision to open up multi brand retail to FDI of up to 51 percent and the lifting of FDI caps in single brand from 51 percent to 100 percent is a welcome step and serves as an assurance to the investors of the Government of India’s commitment to establishing a business friendly climate.” He also informed, “US Industry is advocating for raising India’s FDI caps in defence from 26 percent to 74 percent.” He observed that the US industry is in favour of a Bilateral Investment Teary between India and the US in order to create a more level playing field, incentivizing greater two –way FDI flows.
Speaking on India’s economic challenges and opportunities at the Roundtable Dr Ajit Ranade, Group Chief Economist, Aditya Birla Management Corporation viewed, “The Indian economy is going through a phase of high inflation and low growth. Since long time we have been trying to tame inflation which is a big challenge. It is also accompanied by the balance of payments crisis and widening current account deficit.” He further observed that there is a ray of hope from the small and medium enterprises (SMEs) given their contribution to the industrial output, employment generation and the country’s exports, each accounting to almost 50 percent. He also expressed hope that Indian government has prioritized investments in power, roads and telecommunications and the largest component of the aspired $ 500 billion Indo – US business relations should comprise of investments in these sectors.
In his remarks, Mr Ron Somers, President, U.S.-India Business Council, appreciated that India is on the verge of the passage of Insurance Bill. He also observed that defence is one of the crucial sectors of business engagement between the two countries and suggested that the bilateral trade between US and India should have more involvement of the private sector for deepening the partnership.
Addressing a Press Conference following the Roundtable, Mr Adi Godrej observed that oil and gas could be a particular area of business co-operation between India and the US. Mr Ajay Banga viewed that bilateral trade between India and US should focus on energy, defence, education and medical care among other sectors while investments should be encouraged in technology and creation of intellectual properties. Mr Ron Somers suggested that free movement of technology professionals should be enabled so that the jobs situation turns win-win for both the countries.