A high level business delegation from the US has told the government that unless India persued with greater vigour trade reforms, slashing Customs tariff to 20 per cent and even 10 per cent in the case of intermediates, it could not expect to attract massive foreign investments in the coming years.
Led by the former US ambassador in India, Frank G.Wisner, immediate past Chairman of the US-India Business Council, the delegation placed before Finance Minister Jashwant Singh and senior officials of the Indian government a six-point agenda to spur foreign investment, especially investment from America.
Wisner told mediapersons here today that while the political, defence and security relationship between India and his country was improving, the Indian government should focus more on trade reforms which, he said, the American investors considered as " the mother of all reforms".
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The other points made by the delegation in its talks with the Indian officials, according to Wisner, included reforms in the financial sector require to be given a further push.
The opening up of the insurance sector has seen the emergence of several foreign insurance companies into the Indian insurance sector resulting in a very vigorous growth.
But there is need to enhance the cap for foreign insurance companies to 49 percent to give the sector " greater depth and breadth".
Wisner said he had called on the Insurance Regulator, N.Rangachary earlier in the day and the latter was in agreement that the cap on foreign investment in insurance could be enhanced to 49 percent. He was ver y positive on this, he said.
The former ambassador, who is also vice chairman, external affairs of the American International Group which has joint ventures with the Tata Group in both life insurance and general insurance, he said.