USIBC sees $45-bn opportunity as Modi ignites Indian economy

The US-India Business Council (USIBC) expects India's growing economy to open up investment opportunites to the tune of $45 billion even as visiting Prime Minister Narendra Modi on Tuesday said India is poised to contribute as the new engine of global growth and asserted that a larger Indian economy has "multiple benefits" for the world.

Prime Minister Narendra Modi addressing at the 40th AGM of USIBC, in Washington DC, USA on 7 June 2016

"We have begun our journey to transform India," he said, adding that this would transform the world and other countries also.

Earlier, Vikas Swarup, spokesperson of the ministry of external affairs, tweeted that USIBC has indicated that its members are on track to invest $45 billion more in India.

A statement tweeted by Swarup cited USIBC chairman John Chambers as saying that 20 per cent of its members have invested $28 billion in India in less than two years.

Over the next two - three years, this momentum is likely to increase as 20 per cent more members are likely to make investments in the country, he said. This, he says, means that the investment will be an additional $45 billion, which is a conservative estimate.

"Given Prime Minister Modi's track record towards implementing Digital India and key economic reforms, we are optimistic that this number will be dramatically exceeded, perhaps even doubled," Chambers was quoted as saying in the tweeted statement.

"This is the time when the world needs new engine of growth. It would be nice if the new engines are democratic engines," Modi said in his address to the American business community at the annual gala of the US India Business Council (USIBC).

File photo of PM Modi during a visit to the US.

"Today India is poised to contribute as a new engine of global growth. A larger Indian economy has multiple benefits for the world," the prime minister said as he listed out the achievements of his government in economic reforms and liberalisation of policies.

As a result, India has now emerged as the one of the fastest growing economies of the world and urged the American businesses to come and invest in India, set up efficient manufacturing units.

"India is much more than a market," he said, adding that it is a "reliable partner", as he listed out the key features of a resurgent Indian economy that is geared to become "driver of global economy".

The prime minister said that a larger Indian economy has multiple benefits for the world. He said as India marches ahead on the path of development, it needs to learn from the America experience, in particular its entrepreneurship, technological advancement and products which ranges from drugs to drones.

"Indeed, to me America is not just has a great past, but it is a country with an exciting future," the prime minister said.

Modi exuded confidence that Indo-US partnership would benefit both the countries.

Modi said his government has taken decisive steps to curb corruption.

"We would continue to have disciplined and prudent macroeconomic policies," he told the US corporate leadership.

"We would continue to improve the investment climate and ease of doing business," the Prime Minister said, adding his government wants to make India a destination which not only welcomes businesses but also it is easier to do business.

Modi urged developed countries to open their market.

"We see this as a win-win situation," he said.

He assured the US corporate world to make its taxation system transparent.

India, he said would continue to open up the defence sector.

"We are exploring a simpler and transparent licensing system. The purchase of six nuclear reactors from Westinghouse which would mark a new era in the field nuclear energy in India," the PM said.

Clean Ganga campaign is on the verge of taking off. It is a high priority of the Modi government, he said, adding that his aim is to restore Ganga to its pristine glory.