News / Asia

India Rejects Obama's Concerns About Investment Climate

People walk past an American apparel brand store in Bangalore, India, January 11, 2012.
People walk past an American apparel brand store in Bangalore, India, January 11, 2012.
Anjana Pasricha
NEW DELHI — Indian officials have rejected U.S. President Barack Obama's reported concerns that India's investment climate is deteriorating.  Officials in New Delhi are pushing back, saying India is friendly to foreign investors.

In an interview with the Press Trust of India Sunday, U.S. President Barack Obama said that in too many sectors, such as retail, India limits or prohibits foreign investment.  Indian Commerce Minister Anand Sharma responded to the American leader's comments a day later, saying “observations are observations.”

“There is a difference between perception and reality, reality is different," said Sharma. "India has an abiding commitment to economic reforms and liberalization. We would like to assure all our partners that we have an investor friendly climate.”

PTI quoted President Obama as saying that American businesses “tell us it is still too hard to invest in India.”

Obama praised the Indian economy, saying it is growing at an impressive rate. But he said there appears to be a growing consensus in India it may be the right time to press ahead with another wave of economic reforms.

Minister Sharma says the Indian government has put policies in place to welcome investors. “In all the global projections, if you look at the IMF [International Monetary Fund] and the World Bank reports, for the next three years also, India will remain one of the top three destinations attractive for investors,” he said.

Corporate Minister Veerappa Moily said President Obama is not properly informed and blamed “international lobbies” for spreading negative information about India.

Lawmakers from opposition parties also criticized the American president’s remarks.

President Obama’s observations have come in the wake of growing concerns expressed by many foreign and domestic investors about India’s failure to further liberalize its economy and about the hurdles posed by India’s regulatory framework.

During a visit to India last week, Singapore’s Prime Minister Lee Hsien Loong called India’s business environment “complicated.”

Some Indian officials agreed that there is need to make India's more business-friendly for outside investors.  

“I don't think we are taking any different view that we need to strengthen the investment climate,” said Montek Singh Ahluwalia who heads India’s Planning Commission.

In recent weeks, Indian Prime Minister Manmohan Singh too has spoken about the urgent need to take steps to boost foreign as well as local investment, which has been falling in recent months.

Analysts say Singh wants to take steps to move ahead with reforms in sectors such as retail and insurance, but opposition from political allies has made the task difficult.

You May Like

On Everest, Helicopters Rescue Stranded Climbers

Choppers transport some of more than 100 mountaineers trapped after deadly quake, avalanches More

Video Ten Years After Riots, France Searches for Answers to Neglected Suburbs

In 2005, a Paris suburb exploded into violence after two teenagers were electrocuted as they hid from police; since then, somethings have changed, others not More

US, Japan Announce Historic Revision of Defense Cooperation Guidelines

Nations say new guidelines will be 'cornerstone for peace and security' in Asia-Pacific region while also serving as 'platform for a more stable international security environment' More

This forum has been closed.
Comment Sorting
Comments
     
by: Randy R from: canada
July 17, 2012 10:17 AM
India should learn to take positive criticism.President Obama is right,even World bank and IMF rate india at the bottom when it comes to easy of doing business and investing in the country.

by: John from: German
July 17, 2012 12:01 AM
Actually, I prefer China rather than India.
Simple reason: the population in India is growing too fast to feed.

by: trish from: USA
July 16, 2012 5:46 PM
What the Indian officials and opposition leaders stated on the latter part of the article re: the necessity to make India more business-friendly is exactly what Mr. Obama was talking about. Yet they insisted Mr. O had to be wrong. They are starting to sound like our "ultra -right" Republicans that counter everything Mr. O prepares and/or gets through. Yet they have nothing better to replace these items with other than exactly what he put up there. Both groups seem to not what Mr. O to be right, before they are right. In other words, if it were they that put up the changes first, those same ones he was talking it about, all would be right with the world. No one can give credit where credit is due??? How egotistic!!!

by: K PURUSHOTHAMAN from: NOW IN WEST AFRICA
July 16, 2012 3:23 PM
INDIA HAS NOT REJECTED, INDIAN CIVIL SOCIETY, INDIA'S BUSINESS MINDS, PUBLIC GIVE CAREFUL ATTENTION TO COMMENTS ESPECIALLY OF GOOD ECONOMIES LIKE US.
IT IS THE POLITICIANS WHO REJECT OR OVER REACT TO ANY CRITICISM... FORGET ABOUT THEM... AS WE INDIANS TEND TO IGNORE THEM... INDIA IS GROWING BY GOD'S GRACE AND IN SPITE OF OUR POLICITIANS...

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
‘Angel of the Migrants’ Helps Desperate Syrians Arriving in Europei
X
Henry Ridgwell
April 26, 2015 10:36 PM
Waves of migrants are continuing to arrive on the shores of southern Italy from North Africa. After their dangerous journey across the Mediterranean, they face an unknown future in Europe. In the Sicilian city of Catania there is an activist dedicated to helping the refugees on their journey.
Video

Video ‘Angel of the Migrants’ Helps Desperate Syrians Arriving in Europe

Waves of migrants are continuing to arrive on the shores of southern Italy from North Africa. After their dangerous journey across the Mediterranean, they face an unknown future in Europe. In the Sicilian city of Catania there is an activist dedicated to helping the refugees on their journey.
Video

Video Ten Years After Riots, France Searches for Answers to Neglected Suburbs

January’s terrorist attacks and fears of more to come are casting a spotlight on France’s neglected suburbs. Home to many immigrants, and sometimes hubs of crime, they were rocked by rioting a decade ago. Lisa Bryant visited the Paris suburb of Clichy-sous-Bois, where the 2005 violence first broke out, and has this report about what has changed and what has not.
Video

Video Gay Marriage Goes Before US Supreme Court

This week, the U.S. Supreme Court will hear arguments on whether gay people have a constitutional right to marriage. VOA’s Michael Bowman reports, the case could lead to the nationwide legalization of same-sex marriage, or a continuation of the status quo in which individual states decide whether to recognize gay unions.
Video

Video Study: Insecticide Damaging Wild Bee Populations

A popular but controversial type of insecticide is damaging important wild bee populations, according to a new study. VOA’s Steve Baragona has more.
Video

Video Data Servers Could Heat Private Homes

As every computer owner knows, when their machines run a complex program they get pretty hot. In fact, cooling the processors can be expensive, especially when you're dealing with huge banks of computer servers. But what if that energy could heat private homes? VOA’s George Putic reports that a Dutch energy firm aims to do just that.
Video

Video Cinema That Crosses Borders Showcased at Tribeca Film Festival

Among the nearly 100 feature length films being shown at this year’s Tribeca Film Festival in New York City are more than 20 documentaries and features with international appeal, from a film about a Congolese businessman in China, to documentaries shot in Pakistan and diaspora communities in the U.S., to a poetic look at disaffected South African youth. VOA’s Carolyn Weaver has more.
Video

Video UN Confronts Threat of Young Radicals

The radicalization and recruitment of young people into Islamist extremist groups has become a growing challenge for governments worldwide. On Thursday, the U.N. Security Council heard from experts on the issue, which has become a potent threat to international peace and security. VOA’s Margaret Besheer reports.
Video

Video Growing Numbers of Turks Discover Armenian Ancestry

In a climate of improved tolerance, growing numbers of people in Turkey are discovering their grandmothers were Armenian. Hundreds of thousands of Armenians escaped the mass deportations and slaughter of the early 1900's by forced conversion to Islam. Or, Armenian children were taken in by Turkish families and assimilated. Now their stories are increasingly being heard. Dorian Jones reports from Istanbul that the revelations are viewed as an important step.
Video

Video Migrants Trek Through Western Balkans to Reach EU

Migrants from Africa and other places are finding different routes into the European Union in search of a better life. The Associated Press followed one clandestine group to document their trek through the western Balkans to Hungary. Zlatica Hoke reports that the migrants started using that route about four years ago. Since then, it has become the second-most popular path into Western Europe, after the option of sailing from North Africa to Italy.
Video

Video US Businesses See Cuba as New Frontier

The Obama administration's opening toward Cuba is giving U.S. companies hope they'll be able to do business in Cuba despite the continuation of the U.S. economic embargo against the communist nation. Some American companies have been able to export some products to Cuba, but the recent lifting of Cuba's terrorism designation could relax other restrictions. As VOA's Daniela Schrier reports, corporate heavy hitters are lining up to head across the Florida Straits - though experts urge caution.
Video

Video Kenya Launches Police Recruitment Drive After Terror Attacks

Kenya launched a major police recruitment drive this week as part of a large-scale effort to boost security following a recent spate of terror attacks. VOA’s Gabe Joselow reports that allegations of corruption in the process are raising old concerns about the integrity of Kenya’s security forces.
Video

Video Japan, China in Race for Asia High-Speed Rail Projects

A lucrative competition is underway in Asia for billions of dollars in high-speed rail projects. Cambodia, India, Indonesia, Malaysia Thailand and Vietnam are among the countries planning to move onto the fast track. They are negotiating with Japan and the upstart Chinese who are locked in a duel to revolutionize transportation across Asia. VOA Correspondent Steve Herman in Bangkok has details.
Video

Video Scientists: Mosquitoes Attracted By Our Genes

Some people always seem to get bitten by mosquitoes more than others. Now, scientists have proved that is really the case - and they say it’s all because of genes. It’s hoped the research might lead to new preventative treatments for diseases like malaria, as Henry Ridgwell reports from London.
Video

Video Bible Museum Coming to Washington DC

Washington is the center of American political power and also home to some of the nation’s most visited museums. A new one that will showcase the Bible has skeptics questioning the motives of its conservative Christian funders. VOA religion correspondent Jerome Socolovsky reports.
Video

Video Afghan First Lady Pledges No Roll Back on Women's Rights

Afghan First Lady Rula Ghani, named one of Time's 100 Most Influential, says women should take part in talks with Taliban. VOA's Rokhsar Azamee has more from Kabul.

VOA Blogs