India's Poor Business Climate Scaring Away U.S. Investors

Bangalore: Even after facing criticism on the slow growing economy and indecisive business environment in India, S M Krishna the Foreign Minister assured that India will regain growth and investor confidence. He said, “Questions have been raised about economic policy and commitment to implement reforms. Doubts have been expressed whether the story of Incredible India will remain credible (as quoted by Navhind Times).”

He added, “But, time and again, our economy rebounded with new vigour, on the strength of strong fundamentals, and supported by sound policies and prudent economic management.” In the long annual session in the U.S. India Business Council (USIBC), the American business leaders and thinkers spoke about the cynical business environment in India and they also expressed grief over the slow decision making and no economic reforms.

Michael Froman, U.S. Deputy National Security Advisor on international economic affairs, said that the industries in U.S. are concerned about the relationship and that the investment environment has depreciated. He also pointed that the ‘domestic political challenges are slowing’ the economic reforms. Froman also listed the issues of civil nuclear power agreement, taxes, and regulatory reforms and asked to address it, to be able to continue the relationship.