Wednesday, October 24, 2007
India News...
WASHINGTON (Thomson Financial) - US Treasury Secretary Henry Paulson will press Indian officials next week to loosen investment restrictions in order to attract overseas investment that can be used to build infrastructure within the country, and will also offer US support for India's plans to build a new financial services industry in Mumbai।
Paulson, who will travel to India next week, said India's work in these two areas is needed in order to further open and expand India's economy।
'It is in the best interest of India, the United States and the world for India to continue, and even accelerate, the pace of economic reform and openness,' Paulson said in remarks to the Council on Foreign Relations today।
Paulson said India plans to spend as much as 500 bln usd over the next five years on infrastructure improvements, including those that will help meet India's growing energy demands। He said the US wants to help India attract private infrastructure investment, but said the country can help itself by making it easier for foreign investment to flow into the country.
'The government can do more to encourage this private investment by establishing more hospitable investment, regulatory and financial regimes,' he said today। 'Capital limitations, combined with on-going uncertainty about contract enforcement and regulatory consistency, will make infrastructure investment more difficult to obtain.'
Paulson said he would attend a conference in Mumbai during his trip to help highlight investment opportunities for US companies।
Regarding the financial services center India wants to build in Mumbai, Paulson said he agreed with a report issued in India that says the country must make fiscal, monetary and financial reforms before this can happen। As one example, he said India must continue to loosen its capital controls.
He said he would meet with Indian regulators during his trip to discuss India's plans to develop Mumbai, which he and others see as a chance for companies to provide financial services to companies operating in India and wider Asia।
More generally, Paulson said that on the US side, he is 'committed' to ensuring a open investment regime, and said working together to conclude the ongoing Doha round of World Trade Organization talks would be the 'single most effective thing' both countries could do to ease living standards in India and around the world।
He also said the US continues to support the civil nuclear deal the two countries reached in 2005। That agreement could allow India to trade in nuclear-related materials as long as it allows inspectors from the UN's International Atomic Energy Association to inspect its nuclear facilities and continues its moratorium on nuclear weapons testing.
'This agreement will bring India into the nuclear nonproliferation mainstream, providing access to the technology which can help it reach its economic and environmental objectives,' Paulson said। 'The United States remains committed to this agreement.'
सोर्स-forbes
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