Washington: Prime Minister Narendra Modi said India has now emerged as a business-friendly destination, more so with the upcoming implementation of landmark GST beginning next month, while asking CEOs of top US companies to invest in the country.
PM Modi, during his meeting with the CEOs of top 20 American firms, also said that India attracted the largest amount of foreign direct investment (FDI) as a result of the NDA government's policies in the last three years.
While asking CEOs of top US companies to invest in the country, Modi said India has now emerged as a business-friendly destination, more so with the upcoming implementation of landmark GST beginning next month.
American companies have a great opportunity to contribute to that, Modi told the CEOs. Reiterating his government’s commitment to reforms, the Prime Minister told the gathering that the “implementation of the landmark initiative of GST could be a subject of studies in US business schools.”
In the round table interaction with the group that included Tim Cook of Apple, Sunder Pichai from Google, John Chambers from Cisco and Jeff Bezos of Amazon, he spoke about the reforms undertaken by his government, saying they numbered over 7,000, and were aimed at "ease of (doing) business and minimum government, maximum governance."
PM Modi said the whole world was looking at India and the government was responding by emphasising economic reforms. He said 7,000 reform measures have been undertaken by the government for ease of doing business and following his maxim of “minimum government, maximum governance.”
In concluding remarks, PM Modi said opportunities for tourism through developing hotels in the PPP model at 500 railway stations would be a specific growth opportunity. He emphasised the importance the government attached to efficiency and transparency, MEA spokesperson Gopal Baglay said on Twitter.
"Interacted with top CEOs. We held extensive discussions on opportunities in India," Modi tweeted after the meeting, which lasted for about 90 minutes and included Tim Cook of Apple, Sunder Pichai of Google, and Jeff Bezos of Amazon.
He followed that with a session with members of the Indian diaspora in which he said that just as NRIs had done well once they got a favourable environment in the US, India would be transformed now that 125 crore Indians were getting favourable conditions.
During the interaction at the Willard Hotel, where he is staying, Modi gave a patient hearing to the wish-list of the top bosses.
The Prime Minister pointed out opportunities for tourism through developing hotels in "PPP (public private partnership) model" at 500 railway stations, Baglay said.
PM Modi said his government has focused on improving the quality of life of the people, and added that working towards this end requires a global partnership.
Therefore, he added, India is working on principles like 'Minimum Government, Maximum Governance', efficiency, transparency, growth and benefit for all.
"In concluding remarks, PM stresses imp of coopn 4 start up, innovation &tapping huge intellectual, edu & vocational training potential in India," Baglay tweeted.
The CEOs lauded the Prime Minister's initiatives of demonetisation and digitisation of economy and the GST, the spokesman said.
The CEOs also expressed support for 'Make in India', 'Digital India', 'Start Up India' and other flagship initiatives of the government.
According to Indian officials present at the meeting, several CEOs showed willingness to be partners in skill development and education initiatives in India. They also mentioned social initiatives being undertaken by their companies in India in women empowerment, digital technology, education and food processing.
Infrastructure, defence manufacturing and energy security also came up for discussion during the meeting.
"CEOs applaud reform measures and steps taken by the government to improve ease of doing business," Baglay tweeted.
"CEOs outline priorities in India and suggestions for mutually beneficial partnerships in line with inclusive growth," he said, adding that they reaffirmed their commitment to growing with India and attested to its attractiveness as an FDI destination.
Pichai told reporters after the meeting that they were excited about investing in India.
Praising the steps being taken by the Indian government in the last three years, he said the US companies are looking forward to the roll out of the GST.
"Good," said Cook as he emerged out of the meeting. The US-India Business Council (USIBC) president Mukesh Aghi said the CEOs praised the reforms being undertaken by the Prime Minister and underscore his efforts to make India a business-friendly destination.
Responding to a question, Aghi said the H-1B visa issue was not discussed at the meeting.
Among other CEOs present at the meeting were Shantanu Narayen from Adobe, Ajay Banga from Mastercard, David Farr from Emerson, Doug McMillon from Walmart, and Punit Renjen from Deloitte Global, Jim Umpleby from Caterpillar, Alex Gorsky from Johnson and Johnson, Jamie Dimon from J P Morgan Chase, and Marillyn Hewson from Lockheed Martin. USIBC president Aghi was also present.
Posting a picture of the prime minister with the CEOs on Twitter, Bagley said, "strengthening the Indo-US economic partnership".
In a recent policy document, USIBC said the US-India commercial and strategic relationship supports global security, promotes economic growth and creates jobs for both countries and the global economy.
"Today, as we witness a paradigm shift in the erstwhile global order, an opportunity has emerged for both countries to set new standards in bilateral ties that will be bound by their shared values," USIBC said.
Noting that US-India trade has tripled over the last decade, reaching a historic high of nearly $110 billion in 2015, USIBC said there is an opportunity for both the countries to also sync their regulatory and standards system to increase trade and investment.
In a separate statement, Jagdip Ahluwalia, executive director of Indo American Chamber of Commerce of Greater Houston, said the United States and India share a very symbiotic relationship, and Modi's first face to face visit with Donald Trump is important to strengthen the relationship between the two.
"On behalf of Houston, the energy capital of the world and home of the world's largest Medical Center the IACCGH and the strong Indian American community hope to welcome Prime Minister Modi to Houston in the not too distant future," Ahluwalia said.
Interestingly, the CEO of Johnson & Johnson was among those penciled in to meet Modi. India earlier this year regulated the cost of stents, cutting the price of some by as much as 75%. But US drug companies expressed concern at the step. On regulation of stent costs by India, US companies such as Boston Scientific, Abbott, and J&J have thrown a hissy fit, arguing that such government intervention would inhibit their investment in cutting-edge technologies and warning that India's $5 billion medical-technology market would lose out on latest medical advances.
They are backed by many US law makers -for whom the pharma lobby is one of the biggest sources of political funding. Several lawmakers recently wrote a stern letter warning that "the sudden and unprecedented nature of the decision (on stents) threatens citizens' access to the newest and most innovative medical technologies and raises strong concerns about the business environment in India".
In a follow-up letter, lawmakers also complained about continued barriers, high tariffs, inadequate protection of intellectual property rights, and inconsistent and non-transparent licensing and regulatory practices -charges underscored by a story in the Economist journal that said PM Modi was far from the reformer he had promised to be."Many sectors of the Indian economy remain highly and unjustifiably protected, and India continues to be a difficult place for American companies to do business," they wrote, noting that India was ranked 130th out of 190 countries for ease of doing business.
New Delhi is pushing back vigorously, pointing out in background conversations the predatory nature of western medical business, highlighted by an ongoing case in the US where "pharma bro" Martin Shrkeli -a drug industry executive who famously hiked the price of HIV drugs by 5,000%-is on trial for securities and wire fraud.
Modi also has his task cut out for attracting US manufacturing jobs to India - illustrated by Apple's exertions to make iPhones in India - at a time when the Trump administration's emphasis is to keep jobs in the US and grow them as part of its America First initiative.The initiative clashes with Modi's own Make in India programme.
Such conflicting economic agendas belie the rather more agreeable mood on the geo-political front where both sides pretty much appear to be on the same page even before the two leaders have met. "Thank you @POTUS for the warm personal welcome. Greatly look forward to my meeting and discussions with you @realDonaldTrump," Modi tweeted soon after his arrival on Saturday night, responding to Trump's tweet: "'Look forward to welcoming India's PM Modi to @WhiteHouse on Monday .Important strategic issues to discuss with a true friend!"
