Policy transparency, predictability, legal certainty to double US investment for Make in India
US strongly supports Prime Minister Modi's 'Make in India' campaign, "but companies involved in global manufacturing need transparency, predictability, and legal certainty"
Strongly backing the Make in India initiative, the US on Tuesday said transparency, predictability and legal certainty of policies will help double US investments in India.
"We believe that the US FDI could double if India continues to liberalise its investment regime. That could mean more US firms bringing their comparative advantages in technology, expertise, and capital, creating more jobs, skills, and growth," US Assistant Secretary of State for South and Central Asian Affairs Nisha Desai Biswal said at an event.
She was speaking on 'US investing in India's growth' at the event organised by the University of Chicago's New Delhi centre.
Biswal said the US strongly supports Prime Minister Modi's 'Make in India' campaign, "but companies involved in global manufacturing need transparency, predictability, and legal certainty".
India is working on some important reforms to make it a more attractive destination for FDI, including the announcement of the single-window clearance process for foreign investors, she said.
"What I think has happened in the last two years is a real concerted effort by two countries to find ways to address those challenges," Biswal said, responding to a query on India-US Solar case in WTO.
"There would definitely be challenges when you have two economies that are large and as complex. There would be space where we don't agree, where we take areas of disagreements and seek some sort of resolution, some sort of arbitration."
"According to data compiled by the US Treasury, our companies now invest more in Indian equities -- over $12 billion in 2015 -- than they do in China. According to the US-India Business Council, US firms invested over $15 billion in India in the last two years and will reportedly sign deals worth another $27 billion over the next two years," she added.
India received $3.5 billion FDI during April-December 2015.
Noting that US companies believe that India will be one of the 21th century's great growth stories, Biswal felt that a high-standard bilateral investment treaty (BIT) will send an important signal to US investors that India is open to business.