Addressing a joint meeting of Indo-US CEOs, Finance Minister
P. Chidambaram called for more investments, technology,
process, and management experience from the US. He
highlighted that India has been rated as the second best
destination for foreign direct investment (FDI) after China
but said that it has been rated as the best long-term
investment ahead of China. He bemoaned that of the USD 37
billion investments flowing into India, only USD 5 billion
is from the US. He said that both figures are insufficient
if India is to continue to grow at 8-10% a year. US-India
CEOs' Forum co-Chairman William Harrison said that the lack
of excitement in investment in India is because of "poor
energy supply, roads, airports, ports, the core
infrastructure, and bureaucracy." He said, "it is hard to
get approvals, permits, and in the legal system, the process
is slow and cumbersome and it takes a long time for
settlement of disputes." Announcing a plan to set up a USD
5billion infrastructure fund to make Mumbai a financial hub,
he called on India to "reduce restrictions on foreign
investment, especially banking, insurance, and retail." The
forum identified 6 priority areas of co-operation including
movement of people between the two countries; national
coordination on Intellectual Property Rights (IPR)
enforcement in India; reforms in power sector including
advanced education and technological cooperation;
government-to-government co-operation on the civilian
nuclear energy plan; faster clearance on pending legislation
to liberalize oil and gas sector; and removal of FDI
restriction in banking, insurance, and retail.
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