US firms upbeat about India after Obama’s visit, says FM

Sanjeev Sharma

Tribune News Service

New Delhi, January 28

Upbeat over US President Barack Obama’s visit, Finance Minister Arun Jaitley today said American companies have shown great interest in investing in India which is emerging as among the attractive destinations in the world.

Writing on his Facebook post, Jaitley said US President Barack Obama's visit has helped in forging a new commercial relationship with India.

Echoing the views of analysts who are saying that the Indian economy is in a sweet spot, Jaitley said the opportunity is great and neither obstructionism nor complacency should be allowed to squander it.

“President Barack Obama’s visit to India has helped forge a new commercial relationship with India. The conclave of Indian and American CEOs exhibited a strong confidence about India. The desire of American businesses to invest in India was great. Their queries related essentially to the ease of doing business in India”, Jaitley said.

He pointed out that with the American economy growing stronger, US corporates are flush with funds looking to invest elsewhere and India appears high on their agenda.

The Finance Minister who had also visited the World Economic Forum (WEF) meeting in Davos said India is being seen as a great investment story at a time when other global economies are struggling.

“The world is looking to invest. There are not too many options which are more attractive than India. Whereas most competing economies are facing serious challenges, India is promising to accelerate its growth. Hope has revisited us”, Jaiatley said.

Referring to the logjam in Parliament holding up economic Bills, he wrote, “We cannot allow obstructionism or complacency to squander this opportunity. This is a loud and clear message from Davos”.

India, he said, needs more resources as domestic resources are not adequate and cost of capital is high. Both internal and external factors favour India, he said. The US is undoubtedly the principal engine of global economic growth. Its growth rate is moving up. Brazil, South Africa and Europe are facing challenges. China has realistically accepted that 7% growth rate is their new normal. The IMF considers this figure as more than normal. The oil price decline has favoured India as a net buyer, he said, enumerating the advantages in India’s favour.

Referring to the WEF’s annual meeting at Davos last week, Jaitley said, the investors were looking at India with greater enthusiasm.

Comparing the change in sentiment after the Modi government took over, the Finance Minister elaborated that the WEF meet at Davos was one with a difference. India had the second largest contingent next only to that of the US. “For the past few years serious doubts had been expressed about India and its economic potential. It was placed as a member of the “fragile five”. “I” was in danger of falling off from the BRICS. Both within and outside India there was despondency. This year the environment was entirely different”, he said.