US secretary of commerce William M Daley yesterday said that for every dollar of US investment actively circulating in the Indian economy, $7 were awaiting final government approval.
Too often in India, contracts signed and agreements reached have not translated into completed projects, he said.
Speaking at a luncheon meeting, organised by the Confederation of Indian Industry (CII) here, Daley said there cannot be a choice between India and China as far as foreign direct investment from the US is concerned.
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India is strategically important as President Clinton has repeatedly pointed out, Daley said.
Asked why China consistently beat India in attracting foreign direct investment from the US despite India and the US sharing common features like a vibrant democracy and the widespread use of English, Daley said perhaps it was their attitude (to change) that came out of China earlier.
The state of our bilateral investment relationship is similar to our trade relationship, warranting optimism tempered by reality, he said.
The surface has barely been scratched in our growing commercial relationship, he observed.
Although bilateral trade between the two countries is likely to cross the $10 billion mark for the first time, Indias purchases from the US account for just 0.5 per cent of the US total exports.
The South India states, with their established software skills, are well placed to be a part of the Internet-supported electronic commerce boom.
With increasing subscribers in emerging markets, we believe it is important for the government to reassure business of its support for globalisation of electronic commerce. We believe that industry self regulation should be encouraged, government should refrain from imposing undue regulations and legislations and Internet should be a tariff free environment, Daley said.
Daley said South Indias growth and development in recent years, which is akin to the emergence of the New South in the US, has been triggered by innovative companies intent on opening doors to international trade and investment.
Though India is poised to be a global economic power in the next century, a close look reveals that it has staggering infrastructure requirements, he said.
For instance, the country needs to invest $33.7 billion in the roads sector in the next seven to eight years and $7.3 billion to modernise its ports.
The US commerce secretary laments that contracts signed and agreements reached too often do not translate into completed projects in India
For every dollar of US investment actively circulating in the Indian economy, $7 awaits final government approval.