Moily blames lobbies for Obama comments

Reacting to American President Barack Obama’s statement that India prohibited foreign investment in too many sectors such as retail, Minister for Corporate Affairs M Veerappa Moily said that ‘lobbies’ in India and the US were working to create a ‘perception’ of deteriorating investment climate in the country.

“Obama’s statement is based on misinformation and not on the factual grounds. There are lobbies working here (India) and there (the US), especially after the Vodafone retrospective tax controversy and the GAAR amendment, providing an impression that India has a deteriorating investment climate. Besides, Obama needs to concentrate on his nation, rather than worrying about India’s economy,” Moily said.

According to the Chickballapur MP, the growth of the nation is based on the “strong fundamentals” that India has. “In the US, the growth rate is zero per cent. So is the growth rate of Europe. India is growing at a steady pace. The fundamentals are not strong in the US or Europe, which is leading them from one economic downslide to another. There is no doubt that India’s climate is conducive for investment,” he said.

The Central minister reiterated that investments from the US and Europe amount to only 19 per cent.