Poor infrastructure and corrupt practices have emerged as major irritants for US investors planning to set up shop in India which otherwise offers best opportunities for growth, says a survey.
The survey conducted by AUSIB, a sister concern of the US-India Political Action Committee (USINPAC), among American and Indian business leaders found that 52 per cent of US executives cite infrastructure related to power and transportation as the biggest hurdles in terms of doing business in the country.
Half of the US executives polled see substantial business opportunities in India even as unethical business practices & corruption in government departments are key detrimental aspects hindering global investors from setting up businesses in the country.
Moreover, sixty per cent of the business executives belonging to India and the US believe they get good return on investments when working in the other country.
Besides, every seven in ten business leaders interviewed believe that US-India business relations are headed in the right direction and more than eight in ten expect this relationship to improve over the next few years.
From a list of 11 foreign countries, Indian business executives see the most opportunities in the US while American executives say India has the best opportunities.
On the other hand, Indian executives too face difficulty in obtaining work visas, double taxation and economic uncertainty while doing business in US, the survey said.
"The Indian origin communities in the US and other countries around the world are enthused with the election of Prime Minister Narendra Modi-led government in India, and are confident that the key concern of the business fraternity, i.E. Infrastructural issues will be addressed.
"We estimate that a total investment of about USD 1.5 trillion is required over the next five years to finance India's infrastructure needs. US will be a key contributor to this," Chairman of USINPAC Sanjay Puri said.
The objective of the survey was to gauge whether leaders in both nations wish to evolve from diplomatic stand-still and breed friendly ties with each other motivated by the economic benefits and political stability.
