India United slams Barack Obama for ‘advise’

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US President Barack Obama drew a barrage of fire from India on Sunday after flagging concerns over India’s economic reforms and trade barriers.

Obama noted, in an interview to PTI, that India had prohibited foreign investment in too many sectors such as retail, and cited concerns over the deteriorating investment climate in New Delhi to endorse another 'wave' of economic reforms.

Obama was careful not to be directly critical but cited the concerns of the American business community to make his point.

“They tell us it is still too hard to invest in India. In too many sectors, such as retail, India limits or prohibits the foreign investment that is necessary to create jobs in both our countries, and which is necessary for India to continue to grow,” Obama said.

Back in India, the business fraternity and political parties said that the country could decide on its policies by itself. They acknowledged that growth had slowed down but said solutions to the situation should be found within.

Obama not informed: Moily

After US President Barack Obama spoke about India’s slow economic reforms and trade barriers on Sunday, corporate affairs minister Veerappa Moily said, “Certain international lobbies like Vodafone are spreading this kind of a story and Obama was not properly informed about the things that are happening, particularly when India’s economic fundamentals are strong.”

Opposition parties too lashed out at the US President. “If Obama wants FDI in retail and India does not want, then it won't come just because he is demanding it,” was the terse reaction of BJP leader Yashwant Sinha. BJP vice-president Mukhtar Abbas Naqvi termed the US President's remarks as 'laughable'.

The CPM reacted to Mr Obama’s remarks in like fashion. “They want to open up our economy and market on their terms. For this purpose they are creating this pressure,” said party leader Nilotpal Basu.

D.S. Rawat, secretary-general of Assocham, said, “The US has its own problems and India has its own. Our government will take a decision as per our own compulsions and requirements. We do need reforms but Obama or any other person cannot be dictating Indian government or policy-makers.”

The US, he said, also had lot of 'limitations' like recent restrictions on BPOs. “But it is their decision. Similarly, decisions taken our policy makers should not be questioned.”