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

Conflicts Engulf Christians in Mideast

Research finds an increase in faith-based hostilities, and Christians are facing persecution in a growing number of countries in the region More

Chinese Americans: Don’t Call Us 'Model Minority'

Label points to collective achievement, but some say it triggers resentment, unrealistic expectations More

Iran Bolsters Phone, Internet Surveillance

Does increased monitoring suggest the government is nervous? 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.
West Africa Ebola Vaccine Trials Possible by Early 2015i
X
Carol Pearson
August 30, 2014 7:14 PM
A U.S. health agency is speeding up clinical trials of a possible vaccine against the deadly Ebola virus that so far has killed more than 1,500 people in West Africa. If successful, the next step would be a larger trial in countries where the outbreak is occurring. VOA's Carol Pearson has more.
Video

Video West Africa Ebola Vaccine Trials Possible by Early 2015

A U.S. health agency is speeding up clinical trials of a possible vaccine against the deadly Ebola virus that so far has killed more than 1,500 people in West Africa. If successful, the next step would be a larger trial in countries where the outbreak is occurring. VOA's Carol Pearson has more.
Video

Video Survivors Commemorate 70th Anniversary of Nazi Liquidation of Polish Ghetto

When the Nazi army moved into the Polish city of Lodz in 1939, it marked the beginning of a long nightmare for the Jewish community that once made up one third of the population. Roughly 200,000 people were forced into the Lodz Ghetto. Less than 7,000 survived. As VOA’s Kane Farabaugh reports, some survivors gathered in Chicago on the 70th anniversary of the liquidation of the Lodz Ghetto to remember those who suffered at the hands of the Nazi regime.
Video

Video Cost to Raise Child in US Continues to Rise

The cost of raising a child in the United States continues to rise. In its latest annual report, the U.S. Department of Agriculture says middle income families with a child born in 2013 can expect to spend more than $240,000 before that child turns 18. And sending that child to college more than doubles that amount. VOA’s Deborah Block visited with a couple with one child in Alexandria, Virginia, to learn if the report reflects their lifestyle.
Video

Video Chaotic Afghan Vote Recount Threatens Nation’s Future

Afghanistan’s troubled presidential election continues to be rocked by turmoil as an audit of the ballots drags on. The U.N. says the recount will not be completed before September 10. Observers say repeated disputes and delays are threatening the orderly transfer of power and could have dangerous consequences. VOA correspondent Meredith Buel reports.
Video

Video Ukraine Battles Pro-Russia Rebel Assault

After NATO concluded an emergency meeting to discuss the crisis in eastern Ukraine, the country is struggling to contain heavy fighting near the strategic port of Mariupol, on the Azov Sea. Separatist rebels are trying to capture the city, allegedly with Russian military help, and Ukraine's defense forces are digging in. VOA's Daniel Schearf spoke with analysts about what lies ahead for Ukraine.
Video

Video Growing Business Offers Paint with a Twist of Wine

Two New Orleans area women started a small business seven years ago with one thing in mind: to help their neighbors relieve the stress of coping with a hurricane's aftermath. Today their business, which pairs painting and a little bit of wine, has become one of the fastest growing franchises across the U.S. VOA’s June Soh met the entrepreneurs at their newest franchise location in the Washington suburbs.
Video

Video Ebola Vaccine Trials To Begin Next Week

The National Institutes of Health says it is launching early stage trials of a vaccine to prevent the Ebola virus, which has infected or killed thousands of people across West Africa. The World Health Organization says Ebola could infect more than 20,000 people across the region by the time the outbreak is over. The epidemic has health experts and governments scrambling to prevent more people from becoming infected. Zlatica Hoke has more.
Video

Video Asian Bacteria Threatens Florida Orange Trees

Florida's citrus fruit industry is facing a serious threat from a bacteria carried by the Asian insect called psyllid. The widespread infestation again highlights the danger of transferring non-native species to American soil. VOA’s George Putic reports.
Video

Video Aging Will Reduce Economic Growth Worldwide in Coming Decades

The world is getting older, fast. And as more people retire each year, fewer working-age people will be there to replace them. Bond rating agency Moody’s says that will lead to a decline in household savings; reducing global investments - which in turn, will lead to slower economic growth around the world. But experts say it’s not too late to mitigate the economic impact of the world’s aging populations. Mil Arcega has more.
Video

Video Is West Doing Enough to Tackle Islamic State?

U.S. President Barack Obama has ruled out sending ground troops to Iraq to fight militants of the so-called Islamic State, or ISIS, despite officials in Washington describing the extremist group as the biggest threat the United States has faced in years. Henry Ridgwell reports from London on the growing uncertainty over whether the West’s response to ISIS will be enough to defeat the terrorist threat.
Video

Video Coalition to Fight Islamic State Could Reward Assad

The United States along with European and Mideast allies are considering a broader assault against Islamic State fighters who have spread from Syria into Iraq and risk further destabilizing an already troubled region. But as VOA State Department Correspondent Scott Stearns reports, confronting those militants could end up helping the embattled Syrian President Bashar al-Assad.
Video

Video Made in America Socks Get Toehold in Online Fashion Market

Three young entrepreneurs are hoping to revolutionize the high-end sock industry by introducing all-American creations of their own. And they’re doing most of it the old-fashioned way. VOA’s Julie Taboh recently caught up with them to learn what goes into making their one-of-a-kind socks.
Video

Video Americans, Ex-Pats Send Relief Supplies to West Africa

Health organizations from around the world are sending supplies and specialists to the West African countries that are dealing with the worst Ebola outbreak in history. On a smaller scale, ordinary Americans and African expatriates living in the United States are doing the same. VOA's Carol Pearson reports.

AppleAndroid