World Economy

US Firms to Invest $45b in India

US Firms to Invest $45b in India
US Firms to Invest $45b in India

Members of the US-India Business Council have invested $28 billion in India since September 2014 and another $45 billion is in the pipeline, council chairman John Chambers told the Indian Prime Minister Narendra Modi in Washington.

“In September 2014, USIBC members indicated an investment figure of $41 billion that was likely to be invested over a 2-3 year period. Today I’m happy to announce that in less than two years, about 20% of USIBC members have already invested $28 billion,” Chambers said, PTI reported.

“In next 2-3 years, we will see this pace accelerating—again with 20% of our members indicating that USIBC members are on track to invest an additional $45 billion, which is a conservative estimate,” he added.

Chambers met Modi just after his roundtable with USIBC members, which included the top brass of companies like PepsiCo, Master Card, Warburg Pincus, Lockheeed Martin, Boeing, Westinghouse, Intelsat, Emerson and 8Minute Energy.

According to Vikas Swarup, spokesperson for India’s foreign office, the prime minister outlined the strengths of the Indian economy and its talented workforce to the chief executives and discussed with them the prospects for solar energy and digital connectivity.

 New Growth Engine

Modi in his address to the USIBC said that observing the world needs a new engine of growth, 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.

“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, and added, “India is much more than a market. India is a reliable partner. It is a source of high quality scientific, engineering and managerial talent. We are encouraging foreign and domestic investors to set up high quality and efficient manufacturing facilities.”

He also promised disciplined macroeconomic policies, gender justice and empowerment, social security net and inclusive growth, while assuring that major steps had been taken to curb corruption, which was one of the main concerns and constraints in India.

Modi, who is on his three-day visit to the US, also held bilateral talks with President Barack Obama on Tuesday.

The US and India agreed to a new series of agreements on climate change, nuclear power and national security, including more cooperation on the Paris agreement reached last year.

Modi said, the agreement goes into effect 30 days after 55 nations representing 55% of all greenhouse gas emissions ratify it. India is the world’s third-largest producer of greenhouse gases.