WASHINGTON: The Narendra Modi-led government's functioning in its first week has offered a renewed sense of optimism even as no major policy decision or economic reforms have been announced, according to the U.S. corporate sector.
"There is a renewed sense of optimism in the air and we share that sentiment," said the U.S. India Business Council acting president, Diane Farrell.
"The new Indian government is dynamic, robust -- and the excitement generated by the election must now be capitalised on," said Ron Somers, who recently left USIBC as its president to form own policy advocacy group to improve India U.S. relationship.
Describing the invitation of the South Asian Association for Regional Cooperation, leaders to the swearing-in ceremony as a foreign policy masterstroke, Somers said bold reforms like opening insurance and defense will spur investor enthusiasm, attracting investment and technology.
"USIBC member companies are in this partnership for the long-haul and we look forward to engaging with Prime Minister Modi and the newly appointed Cabinet to deepen investment and increase bilateral trade to $500 billion by 2020," Farrell said.
Tweaking the defense offset policy for sole-sourced defense purchases, which essentially will widen the aperture on the definition of qualified defense offsets to include aspects of the economy that are essential to national security -- like energy security, food security, water security, and health security -- would unleash as much as $4 billion of foreign investment immediately into the Indian economy in areas where investment is needed the most, Somers said.
