New Delhi: American CEOs on Friday identified poor infrastructure and bureaucratic delays as major deterrents to US investments in India, while making a strong pitch for further liberalisation in the financial and retail sector.
Unveiling the US-India CEO forum report with his Indian counterpart, Ratan Tata, JP Morgan Chase & Co chairman and forum co-chair William Harrison cited absence of adequate infrastructure and the bureaucracy as the reasons for lack of excitement in American companies about investing in India.
"I think there is lack of excitement about investing here because of factors like poor energy supply, roads, airports, ports, the core infrastructure, bureaucracy... Its hard to get approvals, permits and in the legal system, the process is slow and cumbersome and it takes a long time for settlement of disputes," he said.
The business forum, comprising select top CEOs from both the countries, has identified six priority initiatives for cooperation to be taken up by both the governments, as well as the private sector, to boost investments.
These include setting up of a five-billion dollar infrastructure development fund to make Mumbai a financial hub and facilitate setting up of large-scale SEZs.
Harrison said the Indian government should also further liberlise the financial sector, as US companies were bullish on growth there.
"India should reduce restrictions on foreign investment, especially in banking, insurance and retail."
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The other initiatives targeted by the forum was facilitating enhanced movement of people between the two countries and stepping up of national coordination of IPR enforcement efforts in India.
Reforms of the Indian power sector and setting up of more institutes of higher learning with opportunities for joint research projects are other areas the forum identified for enhancing cooperation.
The forum also sought cooperation on government-to-government efforts on civilian nuclear energy and sought speedy enactment of pending legislation in the oil and gas sector.
Increased cooperation on human resource development as well as technology exchange between US and India were also among areas identified as priority initiatives by the forum.
The members of the forum from India include Bharat Forge Chairman Baba Kalyani, Biocon Chairperson Kiran Mazumdar Shaw, ITC Chief Y C Deveshwar, Reliance Industries Chairman Mukesh Ambani and Infosys CEO Nandan Nilekani.
From the US, the forum includes Citigroup Chairman Andceo Charles O Prince, AES Corporation President Paul Hanrahan, Pepsico Chairman Steven Peinemund and Visa International President and CEO Christopher Rodrigues.
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