US President Barack Obama said the American business community had flagged concerns over the “deteriorating investment climate” in India due to restrictions on FDI in too many sectors, such as retail, while noting that there was “a growing consensus in India that the time may be right for another wave of economic reforms to make India more competitive in the global economy”.
In an interview to PTI, Mr Obama sounded positive on the Indian economy, “which continues to grow at an impressive rate,” and noted that India’s slower growth rate was to some extent a reflection of the larger slowdown in the world economy.
The US President was careful not to be directly critical of India’s negative investment climate, and said he was only citing the concerns of US business leaders. “They tell us it is still too hard to invest in India. In too many sectors, such as retail, India limits or prohibits foreign investment that is necessary to create jobs in both our countries, and which is necessary for India to continue to grow.”
Mr Obama refrained from prescribing any solutions. “It is not the place of the United States to tell other nations, including India, how to chart its economic future. That is for Indians to decide.” He went on to add that “as India makes the difficult reforms that are necessary, it will continue to have a partner in the United States”.
The US President described Prime Minister Manmohan Singh as “my friend and partner, with whom I have worked closely”. He said he valued the insights of the Indian leader at various international forums, including the recent G-20 summit in Mexico.
Mr Obama also welcomed the Indo-Pakistan dialogue process, and ruled out any solution from “outside” to the Jammu and Kashmir issue, saying disputes between India and Pakistan can only be resolved by the two countries themselves. “It is not the place of any nation, including the United States, to try to impose solutions from the outside.”