BackUS ambassador Richard Verma calls for deeper reforms in India
US ambassador to India Richard Verma says the governments need to do more to boost investor confidence and remove the remaining impediments to two-way trade
Premium
New Delhi: The India-US economic partnership is “a really good story" but there is scope for improvement with instruments such as a bilateral investment treaty going a long way to boost trade to the targeted $500 billion mark, US ambassador to India Richard Verma said on Wednesday.
Bilateral trade touched $109 billion in 2015, which made the US India’s largest trade partner, Verma said at the 12th India-US Economic Summit in New Delhi.
While lauding recent steps taken by India to reform its economy, including the passage of the goods and services tax bill, the easing of restrictions on foreign direct investments in areas such as aviation, defence and banking, besides establishing special courts to deal with commercial disputes, Verma called for a deepening of economic reforms in India.
“The reforms have to continue. Secondly, the governments need to do more to boost investor confidence and remove the remaining impediments to two-way trade. And what does that mean? That means greater certainty in regulatory processes," he said.
Ease of travel was another factor which would help business, Verma said, adding that the US had issued 1.1 million visas to Indians last year, which had been a 20% increase from a year earlier.
In his remarks on Wednesday, Verma said he believed that a “bilateral investment treaty is something will help boost investor confidence, establish effective dispute resolution so that when investors and companies are searching for a destination to put their company or put their money or IP (intellectual property) they want to know is there is a system or a treaty in place where they can resolve their disputes and protect their investments and we don’t have one with India, we have bilateral investment treaties with dozens of other countries but we don’t have one with India."
According to Verma, pushing trade from the current level of $109 billion to $500 billion—a target set in 2013 during a visit by US vice-president Joe Biden—using a “business as usual approach" would not be possible.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
