Sibly said, the American investors had shown lot of interest in India following the start of the reform process in early 90s.
But following the first phase of soft reforms, the country has failed to maintain the momentum, he rued, and added that implementation of certain hard reform decision have been stalled on account of political reasons.
The US state department official pointed out that unless laws governing labour, insurance etc were reformed and bureaucratic red-tapism was removed, it will be difficult to attract US investment to the country.
Sibly said, due to the slow down in the US economy at present the American investment outside has come down significantly.
However, in this gloomy scenario also, China is able to attract ten times more US investment than what flows into India.
Referring to pulling out of AES Trans Power from electricity distribution business in Orissa, Sibly said, the incident has disappointed the US authorities and investors as well.
