Modi Govt Slow In Implementing Key Reforms: Senior US Official

By siliconindia | Tuesday, 08 March 2016, 10:15 Hrs

"The Modi government is well aware of the hurdles and while it may not be moving as fast as some would like, it has taken a number of initial positive steps," he said, citing the "real progress" made by India on complex tax issues, reducing the backlog of transfer pricing cases and easing foreign investment restrictions in the defence and railways sector.

He said India has also shown an "initial willingness" to address long standing agricultural concerns.

He pointed out that US businesses have to be patient since reforms cannot be implemented overnight and given the vast growth opportunities in India, it is important that US businesses do not lose faith but hold on to the Indian economic growth story.

"For our part, we will need to show continuing patience, perseverance and understanding and also be creative in our problem solving as we know from our own national experience that implementing reforms in a vibrant democracy is complicated and does not happen overnight but make no mistake Indias vast untapped opportunity makes staying the course a commercial imperative," Kumar added.

He, however, noted that high tariffs on inputs and procurement and other policies that favour domestic sourcing have historically complicated Indias integration in the global supply chains and its ability to increase exports.

In this context, Kumar said a "welcome feature" of the new budget is the reduction of duties on imports of parts and components.

Source: PTI