NEW DELHI: Bullish about growth potential in India, a top U.S. lawmaker said bilateral trade between the two countries could jump from current $100 billion to $500 billion if the Modi government continues with reform initiatives and removes regulatory hurdles.
Chairman of the powerful U.S. House foreign relations committee Ed Royce called the government's budget proposals "big jump" to boost economic growth and attract foreign investment into India.
"We are absolutely bullish on the opportunity for economic growth in India. We looked at the changes that are occurring and we looked at the achievements and we believe that the bilateral trade could well be dollar 500 billion from current $100 billion," he told reporters.
Hailing government's efforts to encourage infrastructure spending and decision to cut corporate tax by 5 percent over the next four years, he said though budget proposals were not "quantum leap", they were big jump forward in revitalising the economy.
"It was not a quantum leap but it was a big jump and I think the commitment for infrastructure spending is important. I think the 25 percent (corporate) tax rate down from 30 will bring more investment. I generally agree with Prime Minister's thesis of minimal government, maximum governance.
"In other words, getting more efficiency in government. I think that's an approach reflected in the budget and it's a step by step process. It is a big step in the right direction," Royce said.
Emphasising that there was scope for improving efficiency in governance, he said it takes 80 permissions to set up a hotel in India against six in Singapore.
"I know from the companies across U.S .how focus they are on the opportunities in India," he said.
Royce said the bilateral trade volume was one fourth of what it was and taking it to $500 billion would not be difficult.
Asked about India's position on the Ukraine issue, he said it will not have any impact on Indo-U.S. ties.
"I do not think it is going to affect the relationship with the U.S.," he said while calling the issue as "tremendously complicated subject".
He said Russia was recruiting youths to fight in Ukraine. Indian-American Congressman Ami Bera, who is part of the delegation, said there has been a real sense of energy in the ties and it was time to move the relationship forward.
He said it could be the defining relationship of the 21st century. Speaking about the details about certain issues, he, however, added that devil could be in the details.
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