In a
recent interview with the Press Trust of India, the US President has shown his
reservations about the "deteriorating investment climate" in India.
----------------------------------------------------------------------
The
President has said that India restricted foreign investments into its economy
in “too many sectors”, a comment that was not received well by anyone in India.
India
has been showing impressive growth numbers, even during the global financial
crisis, but was able to record just 5.3% growth rate for the first quarter of
the current year while inflation and slower than average industrial production
are one of the primary challenges for the country. The US President has said
that "there appears to be a growing consensus in India that the time may
be right for another wave of economic reforms to make India more competitive in
the global economy".
The Indian
Corporate Minister Veerappa Moily, has said that Mr. Obama wasn’t “properly
informed" and his judgment was based on misinformation being deliberately
spread by “international lobbies”. Commenting further on what the minister
meant by “international lobbies”, Mr. Moily said, “Certain international
lobbies like Vodafone are spreading this kind of a story” He further insisted
that the world need not worry about his country’s economic climate as “its economic
fundamentals are strong,"
US
President was referring to the massive Indian retail sector which so far, has
not been easily accessible to foreign investors. The opposition leader BJP’s Yashwant
Sinha has said, “If Mr Obama wants FDI in retail and India does not want, then
it won't come just because he is demanding it," The Communist Party leader
Nilotpal Basu has said, “Americans are talking about further opening of our
retail sector so that they can come and make profit,"
BJP
vice president Mukhtar A. Naqvi believes that with the current sluggish growth
rate of the US economy, Mr. Obama is not in a position to criticize India. Calling
Mr. Obama’s comments “laughable” Mr. Naqvi said, “[United States] is giving us
a certificate on investment and economy when it itself is facing economic
problems.” Mr. Moily also gave similar comments when he pointed out that "Not
even a single financial institution has collapsed in this country, whereas many
such things have collapsed in US and other countries,"
Relevant
Links
India
limits FDI in too many areas: Obama [Indian Express]
