Indian Investment Climate and Obama's remarks

The press trust of India ( P.T.I.) interviewed U.S.President, Obama a couple of days ago and during the interview asked about investments climate in India.  Obama said  “American firms say it is still too hard to invest in India. In too many sectors, such as retail, India limits or prohibits the foreign investment that is necessary to create jobs in both our countries, and which is necessary for India to continue to grow.”

He further added :“There appears to be a growing consensus in India that the time may be right for another wave of economic reforms to make India more competitive in the global economy.”

There is already a growing impatience among the industrial, political and general population about the delay and impediments  in starting the remaining reform measures  and the Government is also eager about it but it is not getting an opportunity to do them free of elections. The reforms are unlikely to attract votes due to bad propaganda against them by leftists and some others and as a result of it reform measures were left unattended as one election followed another.

The reaction to the U.S.President’s remarks is, as expected,  quick ,vehement and in some cases hostile.  In fact there were not as much spirited reaction when China claimed the Indian State, Arunachal Pradesh as China's as is now on those chance remarks of President Obama.  All criticisms were  based on an assumption that  President Obama was unnecessarily meddling in Indian Policy decisions.

It is as if President Obama convened a special Press meet to criticize the Indian reforms policy.  President Obama was asked his views on Indian investment scenario during the course of the interview and he told what he knew about it. It was not possible for him to say a 'no comment' to the question nor to reply hiding facts. After all what he said were facts and we all know it.

Of all the retorts to President Obama on the issue one by India Inc.was a surprising reaction. The Industry and commerce sector were used to remain silent upon pro reform comments from any side.  But this time the Assocham director General,  CII Director General, and FICCI director General all criticised  President Obama’s Remarks.

Almost all political parties spoke against Mr.Obama when the best option was to ignore it as a passing comment during an interview. It is also to be noted that Obama did not make a direct personal comment in the matter. He was just quoting the American business community.

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