At meet with CEOs, US Prez raises IPR, tax regime, announces $4bn investment; India voices concern on H1-B visas
After sealing the crucial nuclear deal and renewing the defence pact, India and the US on Monday made a strong pitch for improving trade ties and removing bottlenecks in enhancing business opportunities. While Prime Minister Narendra Modi promised a conducive investment environment for foreign companies and flagged India’s concern on H1-B visas, US President Barack Obama raised the issues of Intellectual Property Rights, trade barriers and tax environment.
Addressing the top corporate honchos and trade representatives from both the countries at the India-US CEO Forum and Business Summit, Modi and Obama outlined the great opportunities which remained unexplored between the two nations in the areas of trade and investment. To a round of loud applause over Obama’s announcement of a $4 billion investment in India and his promise for greater cooperation in several key sectors of economy and welfare schemes, Modi said all big projects involving large investment will be monitored by the Prime Minister’s Office. He also said that India will put in place a predictable and competitive tax regime and remove infrastructure bottlenecks.
Promising a conducive investment environment for foreign companies, Modi said India aims to be in top 50 nations in ease of doing business, Obama pitched for “simplicity” in regulatory, tax environment in India, redressal of issues relating to IPR to increase trade & business between the two nations. He said, “absence of an effective IPR protection” in India was affecting business.
Obama announced $4 billion investment in India, including $1 billion for financing exports from the US to aid Make-in-India programme here, a similar amount for small and medium industries and $2 billion in renewable energy projects. But at the same time, he raised issues of trade barriers while seeking ease of doing business in India. “There are still barriers,” he said, while adding there was a need to streamline regulations, cut the red tape and jump through bureaucracy.
Obama also pointed out nearly two per cent of total imports in the US come from India while India imports only one per cent from the US, indicating the need to balance this export-import regime. Referring to the current bilateral trade of $100 billion between the US and India, he compared it to US-China trade of $560 billion, saying, it can give an idea of potential India can unleash. “We have to make sure that growth remains inclusive and is sustained. Growth has to make people’s life better in tangible way,” Obama said, while adding growth cannot be measured in GDP figures and bottomline of balance sheets.
Modi on the other hand, raised issues of US sanctions on companies, business visas and social security for Indian diaspora. At the CEOs’ forum, after listening to suggestions made by business leaders, Modi highlighted priorities of his Government, including improving “Ease of Doing Business”, and “Make in India” initiative.
In an indication towards removing retrospective taxation law by previous Government, Modi said his Government is making efforts to remove “some of the “excesses of the past.” He added: “We will now soon address the remaining uncertainties.” “You will find environment that is not only open, but also welcoming. We will guide you and walk with you in your projects. You will find a climate that encourages investment and rewards enterprise. It will nurture innovation and protect your intellectual property. It will make it easy to do business; our immediate target is to bring us from the rear ranks of the world into the top fifty,” Modi said.
He mentioned the importance of investment in the infrastructure sector, especially in the Railways. While underlining the importance of Intellectual Property Rights, he said all countries of the world should together find a solution to it. In agriculture, he talked about his vision of “per drop more crop” to help tackle farmer issues, and cope with climate issues and water shortages. Modi said it is extremely important to listen to investors, as this helps speed up decisions while mentioning his mantra of “skill, scale and speed”. He added that under the new set up he keeps the State Governments on board while taking decisions to reduce delays and conflicts.
The PM promised to find a predictable and competitive tax regime address shortcomings. He urged American companies to invest in India. “As the two largest democracies, we have a fundamental stake in each otherRss success --- for the sake of our values and our shared interests. Working by ourselves, we can still advance our common interests. But, if we work together, we can achieve greater success. Our partnership will be vital for prosperity at home and our economic leadership abroad. It will help address global challenges of our times,” Modi said.
Reviewing his visit, Obama said the two countries have a number of concrete steps for more investments and referred to breakthrough in civil nuclear agreement, defence cooperation, renewable energy and bilateral investment protection treaty (BIPA). “When leaders make agreements, our agencies and bureaucracy will follow through,” he said. “We can grow and we can prosper together.”