Vice President Biden urged India to lower barriers to foreign trade and investment on Wednesday, July 24th 2013, in order to strengthen its economy.
Foreign businesses, including Wal-Mart, have reduced their investment plans in the country. India’s weak public policy has led its foreign direct investments to crumble by 21% this past fiscal year.
Sreeram Chaulia, a professor at the Jindal School of International Affairs in Haryana, claims “India’s value as a market for U.S. goods and investment is losing sheen. What the Americans don’t want to see in India is protectionist and populist policies.”
In order to increase investment in the country, Michael Froman, the U.S. Trade Representation, pointed out that “investors look for a consistent commitment to, not sporadic outbursts of, reforms. Most importantly, they look for the enduring confidence that comes from long-term, sustained, high levels of growth.”
If India chooses to follow Froman’s advice, US companies will pounce on the opportunity to get a foothold in this lucrative market and growth will soon be at her doorstep.