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This article is more than 1 year old.

India needs open markets; economic growth can’t be micro-managed, says US Ambassador to India

Mini

US Ambassador to India Kenneth Juster has flagged concerns about India’s policy environment and ‘micro-management’ of the economy. Speaking at the India Ideas Summit organised by the US India Business Council, Juster said, “For India to become a part of the global supply chain, first you need a stable & predictable regulatory environment, a lighter touch on regulations and you need to unleash and not micro manage economic growth.”

India needs open markets; economic growth can’t be micro-managed, says US Ambassador to India
US Ambassador to India Kenneth Juster has flagged concerns about India’s policy environment and ‘micro-management’ of the economy.
Speaking at the India Ideas Summit organised by the US India Business Council, Juster said, “For India to become a part of the global supply chain, first you need a stable & predictable regulatory environment, a lighter touch on regulations and you need to unleash and not micro manage economic growth”.
The diplomat emphasized that open markets are necessary for a more dynamic economy.
Juster’s comments assume importance at a time when India and the United states are negotiating a limited trade deal. The United States has raised issues on India’s data localisation, e-commerce and digital tax policies as hindrances for American companies.
Speaking at the USIBC summit on Tuesday, Commerce Minister Piyush Goyal had said that India and US should be able to conclude a quick trade deal after a few calls.
“While we work on an FTA which may take years, India and US could also look at an early harvest Preferential Trade Agreement covering 50-100 products”, said Goyal.
Referring to India’s Atmanirbhar plan, which aims at reducing imports and a greater role for India in global supply chains, the ambassador added, “Being in global supply chains does not mean you make everything here and just get to export it. You must be able to import quality components and export finished goods. This does not mean you are making a concession.”
In recent weeks, industry bodies like the USISPF and USIBC had expressed concerns about delays in custom clearances at Indian ports. Mukesh Aghi, the President of US India Strategic Partnership Forum had written to the Department for Promotion of Industry and Internal Trade saying the delays in clearances for goods coming in from China was impacting US companies manufacturing in India.
The envoy said that there is tremendous potential for India and the US to work together on 5G and set standards for the world. He also said that the post-COVID world provides a great opportunity for India as companies look to leave China. “Managing rise of China, terrorism, modernizing its military and providing jobs are key challenges for India”, he said.