Budget 2014: American Corporate Houses Ready to Pump Money into India

"Critical policy reforms, including reversing the harmful retrospective tax amendment and passing insurance FDI liberalization with full voting rights to 49 percent, will help boost the economy and get the investment climate back on track," Farrell said.

Ron Somers of the India First Group said, "The world will be watching Prime Minister Modi's first budget. To attract a herd of investors rushing to India, this budget, more than others in the past, must match pragmatism with unbridled enthusiasm. This is India's moment."

"In a word, boldness is the need of the hour. The earlier government had shied away from using India's budget to announce 'big bang' reforms, but just such a shock is needed more than ever," Somers said.

Richard M Rossow, Wadhwani Chair in U.S. India Policy Studies at the Center for Strategic and International Studies, noted that the impact of the actual budget itself is perhaps a bit oversold these days as compared to a decade ago when customs duties were high and there were major differences in the tax treatment of different industries and products.

Indian-American community leader Ashok Mago, urged the Modi government to provide opportunities for 20 million NRI's to invest by simplifying rules and use their talent.

"Impose property tax for better education. Provide tax incentives for innovation and growth of small businesses. Privatise as many services as possible, start with Air India. Tax incentives for job training programmes. Reduce the deficit," Mago said.

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