Monday 16 February 2015

Indo-US Business Opportunities - The Road Ahead



President Obama became the first US President to grace the Republic Day celebrations as Chief Guest last month by accepting the invitation from PM Modi. And when he arrived in Delhi PM Modi set aside the protocols to greet him personally at the airport. The media has been abuzz by their surprise friendship and bear hugs, but the fact of the matter is they share a good rapport. This rapport between the leaders of the two largest democracies in the world seems to strengthen the relationship and collaboration between the two nations – India and United States.
Both Obama and Modi share some similarities besides their excellent oratory and people connect skills. One of them is that both had come to power by making strong promises for the growth of their country’s economy. While President Obama had failed in delivering some of them, it would be interesting to see if PM Modi would also follow the suit or will be able to deliver on his promises to bolster the Indian economy.
I’m impressed by how PM Modi recognizes the importance of the role that US can play in the further growth of Indian economy and the efforts he has made to woo the American investors to do business in India are commendable. With a bullish Indian economy and the past year showing revival from recession for the US economy; the business opportunities are there between the two to benefit from. In my opinion there’s a huge potential for PM Modi’s ‘Make in India’ campaign to boost the Indian manufacturing sector from US investments.
The steps taken by the Modi government to make the process of starting business in India easier and faster; are the steps in the right direction to build trust and attract foreign investments. But certain lacunae needs to be addressed first; like the delay in implementation of uniform Goods and Service Tax, lack of stable policy on labour and taxation laws etc. act as deterrent to foreign investors from coming to India. The Indian market had been optimistic till now from the entire positive environment that Modi government had brought. It is action time now for the Modi government to deliver on the promises made. PM Modi will have to address the roadblocks from the way of his ambitious ‘Make in India’ campaign of making India a global manufacturing hub; and investments from US businesses can help in realizing this dream.
The success of the bear hugs of the two leaders will be gauged by the trajectory the trade volume between the two countries takes over the year. Still the road ahead for Indo-US business relations appears to be bright, and would be of smooth ride too if the policies and agreements to increase trade by both countries could be implemented soon.
The time is now for India to ‘Shine’!