Richard M. Rossow, Senior Fellow at the Center for Strategic and International Studies, Washington DC, where he occupies the Wadhwani Chair in US-India Policy Studies, delivered a talk on ‘US-India Economic Ties: The Next Ten Years’ at the ICFAI University, Hyderabad.
According to him, with further simplification of investment policies that is expected from the new government, American investors would find India even more attractive as an investment destination. Three areas which are likely to see significant growth in US-India partnership are civil aviation, defense and insurance sectors, which were, incidentally, opened up for foreign direct investment recently.
Rossow pointed out that it is very rarely that the voices from Washington, whether they are policy hawks, investors or strategy experts, speak in one voice and it is happening now. The roll out of Goods and Service Tax, simplifying of labor laws and reforms in land acquisition policies are three significant developments that global investors are awaiting in India. Anything else that improves the ease of doing business in India would significantly advance the economic ties between the two nations.
Specifically, while India-watchers are aware of the challenges in moving key legislation through the Rajya Sabha, the upper house of parliament, at this point of time, the investor community at large still has placed great hopes on significant progress in the economic environment in India, he said. Any disappointment on that front could again slow down the deepening of economic ties between the two nations, he added.