India’s investment and tax policies must be designed to lure and not to deter capital flows, a top Obama administration official has said.
Describing India as an engine of growth in South Asia, the US Assistant Secretary of State for South and Central Asia, Nisha Desai Biswal yesterday said that the country faces real vulnerabilities.
“Over 400 million people in India lack reliable access to energy. Road traffic is supposed to quintuple in six years but highway construction is slated to grow at a paltry four percent a year”, she said.
- Varun Gandhi Under Attack Over Defence Deals: Here’s How
- This Diwali, Let Blind Students Brighten Up your Homes With Candles & Diyas
- CBI Files Supplementary Chargesheet In Sheena Bora Murder Case
- Soha Ali Khan And Vir Das Starrer 31st October Audience Reaction
- Sahara Chief Subrata Roy’s Parole Extended Till November 28
- Simple Tips To Secure Your Debit Card From Fraudsters
- New Zealand & India Team Being Welcomed In Chandigarh
- Mumbai Call Centre Scam: All You Need To Know
- Jammu Kashmir Chief Minister Mehbooba Mufti Appeals To Police: Here’s What She Said
- Shocker From Ahmedabad: Find Out What Happened
- Bigg Boss 10 Day 3 Review: Celebs Fail To Do Well in First Task
- Airtel Offers 10GB Data At Rs 259 For New 4G Smartphone Users
- Aamir Khan Starrer Dangal’s Trailer Launched: First Impressions
- TMC Supporters Attack BJP Leader Babul Supriyo
- Sri Lankan Navy Apprehends 20 Indian Fishermen
“India’s leaders have targeted to spend USD 1 trillion over five years in infrastructure investment to close the infrastructure gap that prevents real growth in the manufacturing sector, yet it continues to have policies that inhibit foreign investment,” Biswal said in her address to Harvard University, Kennedy School of Government in Boston.
India still ranks poorly amongst all countries as a hospitable place to invest and start a new business, ranked 134 out of 189 countries, she said, adding that India must meet the skills gap to grow its economy.
“In fact, India needs eight times the number of trained architects and civil engineers than it has now to meet its growth projections,” she said.
“So, without sugar-coating its challenges – a tough neighborhood, tightening economic growth and the mounting impacts of pollution on public health – India, the world’s largest democracy, must decide its own path to the future. Will it make the reforms necessary to attract investment? Will it capitalize on the opportunities that lie in front of it?” she added.
“Those are the questions that India’s voters are asking as they cast their ballots and those are the questions that we want to see answered. We know that India has the potential to exceed all of our expectations, and it has done so in the past,” Biswal said.
“But to do so we believe India’s investment and tax policies must be designed to lure – not deter – capital flows; timely regulatory approvals and contract enforcement must be embraced; and protection of intellectual property must be enforced,” she said.
Observing that time and again the rules-based trading system has helped grow and integrate developing powers into major players on the global scene, Biswal said the more integrated India is into global markets and into the economic architecture of Asia, the more India’s economy will grow and benefit the entire global economic system.