Recommendations & Agenda | New Government of India
In July 2019, the U.S.-India Business Council produced a set of recommendations for Prime Minister Narendra Modi and the newly elected NDA government. These recommendations are designed to highlight the economic policies that will propel the Indian economy towards the shared goal of $500 billion in two-way trade between the United States and India.
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The U.S.-India Business Council and the U.S. Chamber of Commerce congratulate Shri Narendra Modi on his election to a second term as Prime Minister of India. Under the Prime Minister’s leadership, U.S.-India business relations have strengthened considerably, with U.S. foreign direct investment (FDI) into India increasing to USD 44.5 billion in 2017, a 15.1% increase from 2016.(1) At the end of 2018, the United States was India’s fourth largest source of FDI, contributing 6% of total FDI inflows.(2)
The United States and India have much in common, including a common set of values, robust democratic systems, and cultures of entrepreneurship. Our countries also enjoy longstanding peopleto-people ties that make them natural strategic partners. As leaders around the globe reconsider their approach to global trade and investment, both nations can and should do more to achieve the shared goal of USD 500 billion in two-way trade.
Despite messages to the contrary, the trade trajectory is positive, with bilateral goods and services trade growing 12.6 percent in 2018 to reach USD 142 billion. Still, significant untapped potential remains in the U.S-India commercial relationship. Business-friendly policies can unleash upwards of USD 150 billion in trade over the next 5 years, as resolution of regulatory issues impacting trade and investment by both U.S. and Indian companies opens the door for more expansive growth.
USIBC stands ready to support Prime Minister Modi and the Government of India in efforts to develop the economic policies that will transform India’s economy and create millions of high quality jobs. In preparing the following recommendations, USIBC held consultations with both U.S. and Indian members to identify impediments to business and critical areas for regulatory reform. We are confident that action by the new Government of India to address these issues will propel the Indian economy forward in the next five years.
Within our recommendations, we have identified priority reforms that are likely to significantly improve ease of doing business for U.S. and multi-national companies operating in India. These recommendations touch on both broader government policies and more specific sectoral regulations that can help maximize and leverage India’s global trade advantages. We are optimistic that the NDA government will recognize these as priority areas of work for the administration’s first 100 days, and take action to push the U.S.-India commercial relationship to new heights over Prime Minister Modi’s 2019-2024 term.