India needs to attract more FDI than FIIs: USIBC

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SME Times News Bureau | 28 Jun, 2014
To become a global manufacturing hub, it is important that India is able to attract more Foreign direct investment (FDI) than Foreign Institutional Investors (FIIs), said Ajay Banga, Chairman, USIBC & President & CEO, Mastercard Worldwide at the FICCI-USIBC Interaction on 'Imperatives for the India-US Collaboration' in New Delhi.

India and US industry leaders has agreed that India needs to make the transition from being a service hub to a manufacturing hub, with USIBC delegation led by Ajay Banga stressing that India needs to capitalize on the space created by the decline in Chinese manufacturing sector, and become part of the global supply chain.

"For this to happen it is important that India is able to attract more FDI than FIIs," said Banga.

He further highlighted the importance of predictability, consistency and level-playing field for the investors to take investment decisions.

He brought special attention to the tourism sector apart from manufacturing for job creation and growth of the country.

The USIBC delegation led by Banga, discussed wide ranging areas of cooperation for India-US economic engagement. The Past Presidents of FICCI Rajan Bharti Mittal Vice Chairman & Managing Director, Bharti Enterprises Ltd; Harsh Pati Singhania, Vice Chairman & Managing Director, J K Paper Ltd along with other eminent industry leaders also joined the meeting and shared their insights into matters pertaining to India-US trade and Investment issues.

The areas which were discussed during the course of the meeting included initiatives which can promote manufacturing in India, develop infrastructure, education & skills and ways of attracting more investment into India.

The enthusiasm of Indian and US industry towards Prime Minister Narendra Modi's visit to United States was very much visible in FICCI-USIBC Interaction.

The discussion started on an optimistic note with Banga asserting that the coming of the new Government in India led by Narendra Modi has opened up numerous opportunities to establish a long term bilateral economic relationship, based on sound commitments to strengthen the commercial engagement which had been lacking for quite some time.

Rajan Bharti Mittal agreed with this sense of optimism which the new government has ushered in and pointed out that the change in leadership has also helped in creating a new mindset where the focus is on innovative areas such as SMART cities, high speed trains and privatisation of airports.

In addition to this contentious issues of Intellectual Property Rights was also discussed and emphasis was laid on debate and discussion to find solutions which can be mutually beneficial.

Narendra Sabharwal, Chair, FICCI IPR Committee said Indian government is placing great emphasis on IPR and FICCI is continuously working in this direction through robust programmes on piracy and counterfeiting.

Harsh Pati Singhania reiterated that it was important for both the sides to understand each other's concern and navigate forward through the process of discussions and consultations.

The USIBC delegation also put forth concerns regarding the difficulties to do business in India, especially issues related to taxation and retrospective tax has been a major source of concern for investors into India.

However, the delegation was optimistic about the new government tackling these issues head on and creating a conducive atmosphere for business and investment to thrive.