The U.S.-India Business Council (USIBC) and Reserve Bank of India (RBI) Governor Dr. Raghuram Rajan met here for a discussion that focused on issues such as inflation and fiscal deficit management.
Top executives from global financial services companies and institutional investors were also present and offered their suggestions for long term foreign investment in India.
Industry representatives heard from Governor Rajan regarding the challenges to curb inflation, while fueling growth for the economy. Industry representatives included Moody's Corporation, Bain Capital, MetLife and PayPal.
Other issues taken up during the meeting included recent rate cuts and monetary policy, deepening capital markets, modernizing India's capital markets to mobilise investment in Indian infrastructure and world-class companies.
Industry's desire for reforms also included further development of a corporate debt market, improved infrastructure trusts and debt fund structures, long-term rupee-denominated government securities, and an updated external commercial borrowing regime.
USIBC also applauded the government for its recent reform introduced in private sector banking that permits the total foreign holding in private banks to have a composite cap of 74 percent and eliminates existing sub-limits for FDI and FII capital (which were at 49 percent). Banks and investors will have greater flexibility to raise capital and to meet the stringent capital adequacy norms. This reform is a critical step in supporting credit growth in the financial markets and the Indian economy.
"As global commercial institutions and investors, we remain profoundly committed to India as we continue to provide a variety of long-term resources - including capital, technology, and know-how - which will help advance the Prime Minister's goals of financial stability, economic growth, digital access, and financial inclusion," said Ajay Banga, USIBC Chairman and President and CEO of MasterCard.
"MoneyGram is committed to serving customers in India by providing reliable and convenient money transfers that keep families and friends connected to their loved ones back home," said W. Alexander Holmes, CFO and COO, MoneyGram. W. Alexander Holmes is also the incoming CEO of MoneyGram.
He added, "With India being the largest remittance receiving country in the world at $70 billion annually, MoneyGram is proud of its role in supporting financial inclusion and remittance inflows, including the ability to send money into bank accounts. We look forward to continuing to work with the Reserve Bank of India as well as the Government of India to support economic growth and accelerate access to financial services in India."
"The Indian financial markets are an important driver for the country's economic growth. There needs to be a level playing field for global participants in India's financial markets with clear, nationality-neutral regulations across all asset classes," said USIBC President Mukesh Aghi.
Formed in 1975 at the request of the U.S. and Indian governments, the U.S.-India Business Council is the premier business advocacy organization, comprised of top-tier U.S. and Indian companies advancing U.S.-India commercial ties. USIBC is the largest bilateral trade association in the United States, with liaison presence in New York, Silicon Valley, and New Delhi.
