New Delhi – The Indian business community came out strongly on Tuesday in support of sentiments expressed by US President Barack Obama in calling for much-needed reforms to the Indian investment climate.
In a statement on the US President’s remarks on India’s investment climate, Adi Godrej, President of the Confederation of Indian Industry (CII) said, “CII notes the concerns raised by US President, Mr Barack Obama on India’s investment climate.”
“CII strongly feels that it is time to announce a few confidence building reform measures such as announcing increasing FDI caps in civil aviation, defense production and opening of FDI for multi brand retail. These will go a long way in correcting the perception about India globally,” said Godrej, Chairman of The Godrej Group.
Throwing light on the source of doubts in the minds of the international community, Godrej said, “The global investors’ perception on India has been affected due to the recent developments in Indian policy making. With the introduction of GAAR, which was intended to plug taxation loopholes, and the announcement on retrospective amendments to income tax law had affected business sentiments and investors’ confidence globally.”
Earlier, in a recent exclusive interview with India America Today, Godrej, representing one of the largest family-owned businesses in India, candidly admitted the need for reforms and governance in India, as the Indian economy and businesses were passing through difficult times.
“I think from the US side, the challenges are some of India’s regulations which restrict investments in certain fields — for example Foreign Direct Investment (FDI) in multi-brand retail, investment in the aviation sector in India by airline companies outside, and such other cases,” Godrej told IAT. (IATNS)