Two senior Indian cabinet ministers double teamed in New York and Washington to talk up India to American business, allaying their apprehensions about rulings they feel discriminate against them, while assuring them that New Delhi remains open for business and profit-taking.
In moves aimed at arresting the slide in foreign investment in India and reversing the perception that India is resorting to protectionist measures, finance minister P Chidambaram and commerce and industries minister Anand Sharma met American investors and other interested parties in Washington and New York respectively to put out a conciliatory message that New Delhi will offer a level playing field.
“The finance Minister mentioned that while some concerns have been expressed about the current business environment in India, the policies adopted by the government of India are pro-growth and WTO compliant,” the Indian Embassy said in a statement about his meetings with Senator Max Baucus, chairman of the Senate Finance Committee, among others on first day of his four day visit. Chidambaram, it said, stressed that the government of India is committed to ensure a “transparent, fair and non-discriminatory investment environment for foreign investors seeking to do business in India.”
Officials said Chidambaram also met CEOs and top management officials of a number of American companies with substantial investments in India, including Microsoft, Lockheed Martin, Boeing and International Lease Finance Corporation (ILFC). While there were broad discussions on the current business and investment environment in India, the finance minister took up US gripes about transfer pricing and taxation issues, explaining recent government rollbacks that suggested a more reasonable approach than what was seen by Americans as a confrontational line that had riled foreign investors. Indian officials said the US companies were “appreciative of the measures taken to address concerns relating to Transfer Pricing,” even as the US-India Business Council welcomed the slew of concessions from New Delhi ahead of the twin ministerial visits.
In New York meantime, Sharma spoke about the slew of measures the government was rolling out to address complaints of foreign investors: National Investment and Manufacturing Zones being set up across India; a single window approval mechanism for investments; fast-tracking of critical infrastructure projects; use of technology to minimize paperwork for investment proposals; efforts to tackle the emotive issue of land; and establishment of a Cabinet Committee on Investments chaired by the PM, were cited as some of the steps the government has taken to spur investments in the country.
But on one issue both ministers pushed back: The adverse impact in India of the Comprehensive Immigration Bill recently passed by US Senate which will essentially hinder free movement of India’s biggest asset — skilled professionals.
Major economic policy reforms will most likely come after the general elections, deputy chairman of the Planning Commission Montek Singh Ahluwalia said in Washington on Thursday.
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