India US | Doing Business in India is Difficult; United States (US) State Department Latest Report | Doing business in India is as difficult as ever, government should reduce barriers to investment


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  • India US | Doing Business In India Is Difficult; United States (US) State Department Latest Report

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  • The government has faced some criticism due to the rise in the cases of Kovid.
  • India’s insurance sector liberalized, foreign investment limit raised

The US State Department has said that doing business in India is as difficult as it was before. It has also appealed to the government here to reduce the barriers to investment. The cooperation of the administration has also been sought in this.

report released on Wednesday

The US State Department said in the report “2021 Investment Climate Statement: India” released on Wednesday that India remains a challenging place to do business. It also referred to the removal of the special constitutional status from the state of Jammu and Kashmir and the passage of the Citizenship Amendment Act (CAA). The report said that producers have been effectively cut off from the global supply chain. Expansion in bilateral trade has been restricted.

Question raised on the decision of 100 days

The State Department in its report also mentioned two “controversial” decisions taken in the first 100 days of the second term of the BJP coalition government. In this, the removal of special constitutional status from Jammu and Kashmir and the passing of CAA has been described as controversial. The report says that India maintains that CAA was its internal matter. There is no basis for any foreign party to express its views on issues related to the sovereignty of India.

Abolition of Article 370 is an internal matter of India.

India has clearly told the international community that the abrogation of Article 370 from Jammu and Kashmir was its internal matter. The State Department report states that there were protests after the implementation of the CAA but it ended in March 2020 with the implementation of the lockdown due to Corona. Many issues, including the management of Kovid, the decline in economic activity, became a major issue in 2020. By December 2020, economic activity started showing signs of positive growth.


criticism due to corona

The BJP-led government has faced some criticism due to the recent increase in the number of Covid cases. The State Department said that in response to the economic challenges posed by the pandemic and the lockdown, India created a number of programs of comprehensive social welfare and economic incentives. Increased spending on infrastructure and public health.

Incentives were also given to many industries

The government also adopted production-linked incentives to boost manufacturing in pharmaceuticals, automobiles, textiles, electronics and other sectors. These measures helped India recover from a nearly 8% decline in gross domestic product (GDP) between April 2020 and March 2021, and a return to positive growth from January 2021.

Focus on foreign investment continues

The Indian government continues to focus on foreign investment. In the wake of the pandemic, India implemented several ambitious economic reforms, including new labor codes and historic agriculture sector reforms, the report said. This should help in attracting private and foreign direct investment (FDI). In February 2021, Finance Minister Nirmala Sitharaman announced plans to raise $2.4 billion through privatization and it is believed that this will reduce the role of the government in the economy.

The report said that in March 2021, Parliament further liberalized India’s insurance sector. This increased the foreign direct investment (FDI) limit from 49% to 74%. However, in this, the condition of appointing only Indian citizens in the director and top management has been kept.

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