Press Esc to close

India Inc echoes Obama; for easing FDI norms

New Delhi:July 17,2012 IANS 21:15 IST

The Confederation of Indian Industry (CII), on Tuesday, urged the government to urgently announce confidence-building reforms like opening up multi-brand retail trade that would send out positive signals to global investors about the Indian economy.

Echoing virtually US President Barack Obama’s views on the “deteriorating investment climate” in the country, the industry lobby said the government should also take steps such as raising foreign direct investment (FDI) in civil aviation and defence production.
“CII strongly feels that it is time to announce a few confidence building reform measures such as announcing increasing FDI caps in civil aviation, defence production and opening of FDI for multi-brand retail,” said CII President Adi Godrej.

“These (measures) will go a long way in correcting the perception about India globally.”
Godrej added that recent policy decisions like introduction of GAAR (General Anti Avoidance Rules) and the announcement of retrospective amendments to income tax law had affected business sentiments and investor confidence in the Indian economy globally.

Focus on reforms


The Federation of Indian Chambers of Commerce & Industry (Ficci) also said the country’s policy makers should focus on the reform process than on countering Obama’s views which are aimed at shoring up the US president’s support bases in an election year.
“We may see more of this rhetoric in the run-up to the November’s presidential race. We should focus on reforms,” Ficci Secretary General Rajeev Kumar told IANS.

According to Kumar, the government should look at other reform measures which will have little or no political backlash like an amendment to the Agricultural Produce Marketing (Regulation) Act and implementation of cash subsidies transfer to the poor.

The government Monday brushed aside Obama’s views, stating that India’s foreign direct investment policy regime is investor-friendly and the country has taken an array of steps to liberalise its economy and ease norms related to foreign investments.


The Prime Minister’s Office (PMO) quoting a recent UNCTAD report pointed out that India is the third most desirable destination for FDI.

“Foreign direct investment inflows to South Asia turned around as a result of higher inflows to India, the dominant FDI recipient in the region.” Pushing the point further, Commerce and Industry Minister Anand Sharma said, “Obama’s perception is different from reality”.

Go to Top

Photo Gallery
CPI(M) workers chant slogans at a protest rally outside BJP headquarters in New Delhi on Tuesday...

CPI(M) workers chant slogans at a protest rally outside BJP headquarters in New Delhi on Tuesday...

Woman teachers pose with Diwali greeting messages at a school in Moradabad on Tuesday...

Woman teachers pose with Diwali greeting messages at a school in Moradabad on Tuesday...

A girl buying decorative items in a market on the occasion of Dhanteras festival in Bhopal on ...

A girl buying decorative items in a market on the occasion of Dhanteras festival in Bhopal on ...

Vendors show lanterns to customers at a roadside market ahead of the Hindu festival of Diwali in ...

Vendors show lanterns to customers at a roadside market ahead of the Hindu festival of Diwali in ...

BJP National President Amit Shah and BJP Kerala state president Kummanam Rajasekharan wave to the ..

BJP National President Amit Shah and BJP Kerala state president Kummanam Rajasekharan wave to the ..

England Midfielder Callum Hudson-Odoi(14) and Hinata Kida(6),Midfielder of Japan vie for the ball ..

England Midfielder Callum Hudson-Odoi(14) and Hinata Kida(6),Midfielder of Japan vie for the ball ..

Actress and BJP MP Hema Malini along with her daughters Ahana and Esha cutting a cake to celebrate..

Actress and BJP MP Hema Malini along with her daughters Ahana and Esha cutting a cake to celebrate..

Union Minister for Defence, Nirmala Sitharaman with Chief of Naval Staff, Admiral Sunil Lanba and ..

Union Minister for Defence, Nirmala Sitharaman with Chief of Naval Staff, Admiral Sunil Lanba and ..

Kamaraj Congress (KKC) and Most Backward Communities Federation demonstrators lying on the road in..

Kamaraj Congress (KKC) and Most Backward Communities Federation demonstrators lying on the road in..

Rajesh Talwar arrives at his residence in Noida on Monday after he, along with his wife Nupur, was..

Rajesh Talwar arrives at his residence in Noida on Monday after he, along with his wife Nupur, was..

Like us on Facebook

Copyright 2017, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523
Powered by Yodasoft Technologies Pvt. Ltd.