WASHINGTON: The Modi government has kindledhuge interest in the U.S. private sector on India but needs totake steps on economic reforms, including the key GST bill, ascreating a more transparent and predictable tax structure iscritical, a top Obama Administration official has said.
"(Prime Minister Narendra) Modi has taken a big stand onthe global stage on essentially talking about India and itseconomic journey," Assistant Secretary of State for South andCentral Asia Nisha Desai Biswal said, noting that after hecame to power there has been a huge amount of interest in the U.S. private sector.
"I think, the Prime Minister is probably the greatestbrand ambassador for India in attracting that kind of economicinterest," Biswal, Obama Administration's point person forSouth and Central Asia, told PTI.
The world is looking for Indian economy to be a driverand engine of growth, not just for India but for the regionand the world, she said, noting that the Modi government takequite a number of measures in this regard.
"Whether it is enough or not, it is not for me to judge.
I think, the judge of that is in the flow of investmentscoming in," Biswal added.
Responding to a question on the steps the Modi governmentnow needs to take on economic reforms, she said creating amore transparent and predictable tax structure is critical.
"I understand that the GST (Goods and Services Tax) billis a priority for the government and we hope that there willbe a movement in that, because that would be a very importantstep in that direction," she said.
The government has set April 1, 2016 as the roll out datefor the indirect tax reform GST, which will subsume excise andservice tax and other local levies. The key indirect taxationreform GST Bill has been hanging fire since since 2006-07.
"Certainly, I think, you have seen an uptick in FDI(Foreign Direct Investment) and FII (Foreign InstitutionalInvestor), but it is not sufficient to fuel the ambitiousagenda that the Indian government has laid out for itself,"she said.
"So I think, the question that is to be asked that whatfurther step can really create the investor confidence tounleash the flow that would fuel the growth in manufacturing,in job creation, and the economic growth that India seeks,"said Biswal, the first Indian-American to be heading this topdiplomatic position in State Department.
"I think the Prime Minister has recognised that he wouldlike to improve India's standing and track record in terms ofglobal ranking in enabling environment, ease of doing businessand certainly there are places where that is easier and placeswhere there is still quite a bit of obstacles, barriers toentry for companies that are seeking to invest.
"So those are all challenges that need to be tackled,"she said ahead of the inaugural India-US Strategic andCommercial Dialogue to be held here on September 21 and 22.
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