India will win back investors, says Krishna

Facing strong criticism over constant slowing economy and unpredictable business environment in India, Foreign Minister S M Krishna said India will regain its growth as well as investors’ confidence.

“Questions have been raised about economic policy and commitment to implement reforms. Doubts have been expressed whether the story of Incredible India will remain credible!” Krishna said. “But, time and again, our economy rebounded with new vigour, on the strength of strong fundamentals, and supported by sound policies and prudent economic management.”

Krishna’s remarks came at the end of the day-long annual gala of the US India Business Council (USIBC) where American corporate leaders and think tanks expressed disbelief over the current business environment in India and lamented that economic reforms are not taking place at the desired pace.

Michael Froman, US Deputy National Security Advisor on international economic affairs, said the US industry has increasingly become concerned about their relationship with India given that the investment environment has deteriorated.

“Domestic political challenges are slowing” the economic reform and as a consequence, the economic relationship is not achieving that it might be, he noted.

The disappointment of the business community is “worrisome”, as it has been one of the strongest proponents of a strong US-India relationship, Froman said.

Meanwhile, new Chairman of USIBC Ajay Banga said policy flip-flops and unpredictable business climate are hampering the country’s progress and scaring away foreign investors.

Krishna said, “In an era of global inter-dependence, not everything is within the powers of national governments. But we are confident that we will restore investor confidence and regain economic momentum and growth,” he said.