Corporate America wants Finance Minister Pranab Mukherjee to give positive indications on raising the FDI cap in insurance sector and opening multi-brand retailing during presentation of budget.
In their wish list to Mukherjee, as he prepares to present his annual budget in less than 10 days, the US business houses have sought increasing FDI cap in insurance sector to 49 percent, besides reducing tariff in a whole range of items.
The American corporates also urged opening up of multi-brand retailing; liberalisation of FDI norms for food and agricultural products and streamlining the foreign investment process.
“We believe adoption of these proposed changes would be of tremendous benefit to the Indian economy by stimulating long term stable investment and significant job creation,” said Ron Somers, president of US India Business Council, in a memorandum.
The council represents the top American companies, including PepsiCo, Boeing, General Electrics, and Lockheed Martin that does business with India.
Despite global economic recovery, many conditions persist that stand as challenges to India maintaining its rapid growth, Somers said.
He said USIBC is committed to supporting implementation of policies and regulations that further strengthen markets in India, while facilitating inclusive growth across all economic sectors and tackling challenges such as the price rise which threatens India’s food security goals.
The memorandum send February 9, was twitted by USIBC on Friday with a link to its copy.
It notes that India remains an attractive destination for foreign investors particularly because it strives to create a predictable and transparent regulatory environment that encourages investment.
“Raising the Foreign Direct Investment (FDI) cap in insurance to 49 percent will be an important tool in the creation of a world-class infrastructure that will propel India to a higher level of economic growth,” said the memorandum spread over 11 pages.