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Finance Minister urges US corporates to invest in India

11 Jul 2013 Evaluate

In a move to boost the foreign investment into the country, Finance Minister P Chidambaram has defended Indian policies as growth oriented and urged the leaders of the US corporate sector to make substantial investments in India. Chidambaram, who is on a four-day US visit to attend the annual leadership summit of US-India Business Council, expressed the need for US companies to set up local manufacturing bases in India, saying that it is in the mutual interest of both countries for India to become a large manufacturing economy.

Finance Minister stressed that India is committed to ensure a transparent, fair and non-discriminatory investment environment for foreign investors seeking to do business in India. By adding further, Chidambaram said that steps are being taken to implement the recommendations regarding the transfer pricing and the Comprehensive Immigration Bill, which were recently passed by the US Senate. Finance Minister also emphasized Indian concerns about the provisions in the Comprehensive Immigration Reform Bill relating to skilled non-immigrant visas.

Chidambaram visit to the US came at a time when there is an increasing disappointment with Indian policies. The US lawmakers have written to Secretary of State, John Kerry and US President, Barack Obama, expressing their concerns over the Indian policies. They alleged Indian policies discriminatory, which do not provide a level playing field to the US companies.

Meanwhile, the foreign direct investment (FDI) inflows for the fiscal 2012-13 recorded a decline of 38% to $22.42 billion compared to the $35.12 billion inflow in the previous year. Foreign investment is crucial for economic development of a country and to attract foreign investment into the country, the government has been liberalizing the foreign investment policy. Finance Minister had earlier visited several major financial markets like Germany, Canada, Singapore, Hong Kong, and the UK to sell India’s growth story.

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