With the European Union budget less than a month away, there is a common desire among India’s trading partners for ease of doing business and lower tariffs.
The UK-India Business Council (UKIBC) expects the Indian government to reduce tariffs on alcohol, food and medical sectors. This is because a Free Trade Agreement (FTA) has been created between the two countries.
Additionally, the US-India Business Council (USIBC) has called on the Indian government to create a standardized process for reform and to make India an attractive destination for US investors.
in an interview with CNBC-TV18UKIBC Chief Executive Officer Richard McCullum stressed the need to increase financing in priority sectors in the upcoming budget. McCallum also called for the removal of non-tariff barriers to facilitate increased trade between the UK and India.
He further suggested that tariff reductions in areas such as food and health care could further strengthen economic ties between the two countries. McCallum also called on the government to encourage insurance and banking companies to invest more in India.
USIBC Managing Director Alexander Slater echoed these views and stressed the importance of a consistent approach to engagement and regulation in improving the investment climate for US companies in India. Slater also suggested that India should leverage its “China +1” strategy by opening up its domestic market and providing a level playing field for foreign investors.
He added that the finalization of rules on direct listings abroad and the acceleration of pre-pricing regimes will further encourage investment in India.
Overall, both UKIBC and USIBC believe the focus on economic reforms in the upcoming budget will lead to more foreign investment in India.
First published: IST
