US firms investing more in India than China

Tribune News Service

New Delhi, April 19

US Assistant Secretary of State for South and Central Asia Nisha Desai Biswal today said according to data compiled by the US Treasury, American companies now invest more in Indian equities  —  over $12 billion in 2015 — than they do in China.

She said one of the best tools out there to increase US investment in India would be a high-standard Bilateral Investment Treaty (BIT).

Biswal said according to the US-India Business Council, American firms invested over $15 billion in India in the past two years, and will reportedly sign deals worth another $27 billion over the next two years.

She was delivering a talk on "US Investing in India's Growth" at University of Chicago Center here today.

Biswal said according to the National Intelligence Council, by 2030, “India could be the rising economic powerhouse that China is seen to be today… a strong economic engine in India could lay down new foundations for prosperity and regional cooperation in South Asia.”

She said India’s economy could drive global economic growth, bringing shared prosperity across the world, including to the United States. “And that is why we have made economic diplomacy such a major pillar of our relationship. Trade between our nations has grown by a factor of five over the last 15 years, to over $100 billion”.

The Obama administration has called for a more liberalised investment climate. “And we believe that US FDI could double if India continues to liberalise its investment regime. We strongly support Prime Minister Modi’s “Make in India” campaign, which envisions India as an elite manufacturing hub. But companies involved in global manufacturing need transparency, predictability, and legal certainty,” Biswal added.