US believes India's economic reforms are on right track

A series of reforms unleashed by India in recent months are "important steps" around open, predictable and rules based reforms, a senior American trade official has said, but insisted that more needs to be done to attract foreign investments in particular those from the US.

"These are important steps around open, predictable and rules based reforms," Deputy US Trade Representatives Robert W Holleyman told an audience here as he listed out the number of economic reforms started by the Indian Government in the last one year – including increasing FDI in the insurance sector.

"What we see is there is positive trend across all proposed rules and across concerned ministries and that trend is to increase transparency and predictability," he said.

"We are encouraged by the steps to increase this level of engagement," he added. In his remarks on "One Year Later: Indo-US Trade– Expectations, Apprehensions and Solutions" organised by the US India Business Council (USIBC), Holleyman argued New Delhi needs to take more steps to improvement business environment in the country and make rules open and predictable.

"India needs to create conditions to attract investment. We are seeing positive signs from Modi government to improve the business environment.

We want to see Prime Minister (Narendra) Modi succeeding in improving India's ranking in World Bank’s Ease of Doing Business report," he said.

"We also want to see continued improvement in regulatory and legal sector.

I am struck by Prime Minister Modi use of the word redtapism.

I think that is a great phrase. It captures so well the challenges he sees, the investors' sees and the Indian businesses see about doing business," he said.

US companies, he said, are still facing "significant" trade and investment barriers in India. In his key-note address, the Charge’d Affaires, Embassy of India, Taranjit Singh Sandhu, said the Modi government has shown a strong resolve to carry forward the reform agenda.

"Prime Minister Modi has sent a clear message, that India is open for business. A number of steps have been taken to create a business friendly environment," he said.

"The winds of change are already visible in India. The scope and potential of infrastructure and related developments is huge," Sandhu said.

"India is moving quickly, on its commitment to reform, throwing up tremendous opportunities, for working together.

Since assuming office in May 2014, the new government has undertaken a number of new reform measures whose cumulative impact could be substantial.

The prospects for India’s economy, creates added context, for forging closer relations between India and the United States," he said.

Releasing results of a recent survey, executive director of Khaitan & Co Paku Khan said 77 per cent of respondents "feel positive" after pro-industry, pro-reforms budget.

At the same time, 82 per cent "expressed concern" on India’s low ranking in "Ease of Doing Business" as deterrent to investment.