However, Planning Commission Deputy Chairman Montek Singh Ahluwalia, had a different take as he shared investors' concerns expressed by Obama. "I think many countries have been expressing concerns on investment climate...We need to strengthen it".
Sharma, in reaction to the US President's remarks that India must carry out difficult economic reforms, said,"he (Obama) has every right to convey what his perceptions are but the policy-making is a sovereign decision and India's FDI policy regime is investor-friendly".
Obama in an interview to PTI noted that it is still too hard to invest in India. "In too many sectors, such as retail, India limits or prohibits the foreign investment...Which is necessary for India to continue to grow," he stated.
Agreeing that there have been problems and delays in approvals, Sharma said there are "constraints of coalition, which I confess but at the same time we have taken decisions".
The government, he said, is putting in place measures for faster approvals and improving ease of doing business.
But, Sharma, who has been raising concerns over protectionist measures in the US, said, "We would rather urge the US to demonstrate leadership in bringing down barriers, encouraging capital flows and trade in the world". The US should take forward the stalled Doha Development Round of the World Trade Organisation to a meaningful conclusion.
On Obama's concern over India not allowing FDI in multi-brand retail, Sharma said, the decision has not been reversed and the process of consensus building is underway.
Economic Affairs Secretary in the Finance Ministry R Gopalan also said,"the government in its wisdom will take appropriate decision at right time". MORE
