NEW YORK, Sept 25: Top American CEOs have sought “additional steps” to speed up economic reforms in India, to which Prime Minister Narendra Modi promised to fast-track the decision-making process as he asked them to take advantage of the huge opportunities of investing in the country.
“Please continue to do more what you are doing. May be slightly faster,” the 42 CEOs of American companies with collective networth of USD 4.5 trillion, told the Prime Minister.
“By and large the mood was very upbeat. There is general consensus that the Prime Minister is effecting change in India. The only thing all the CEOs said is that please make that change faster,” External Affairs Minister spokesperson Vikas Swarup told reporters after the meeting.
During the ‘Roundtable with American Inc’, the Prime Minister listened to each one of the CEOs present in the room about their concerns and plans for India and how these issues can be resolved, he said.
Inviting the US companies to set up manufacturing units in India, Modi told them, “Reform in governance is my No 1 priority. We are for simplified procedures, speedy decision making, transparency and accountability.”
He also listed the sectors that have been opened up in India for investment and said that “FDI all over the world has fallen but in India it has increased by 40 per cent.”
“This reflects confidence in the Indian economy,” Modi said while interacting with the CEOs from the manufacturing and infrastructure sectors.
The CEOs present at the meeting included Lockheed Martin Chairman and CEO Marillyn Hewson, Ford President and CEO Mark Fields, IBM Chairman Ginni Rometty, Pepsi Co Chief Indra Nooyi and Dow Chemical Chairman Andrew Liveris.
Briefing reporters about the day-long interactions that the Prime Minister had with the corporate world, Indian Ambassador to the US Arun K Singh said there were some suggestions made about “additional steps that can be taken in terms of ease of doing business”.
“Those are things that the Government would assess,” he added.
Modi told the CEOs that fundamentally he believes in deregulation, the Government should allow the private sector to develop and that he is for predictable, transparent and accountable governance.
Singh said that it came through clearly that most people felt that this was a very good moment for India in the global context.
During the meeting, Modi circulated a one-page fact sheet summarising the steps taken for deregulation, reforms and bringing consistency in the tax administration.
“That note is based on hard facts, on what the Government has actually done, what it has done for ease of doing business, where we all expect that when the next report comes, India should have jumped several places up,” Swarup said.
The fact sheet also listed efforts made by the Government in increasing FDI, efforts towards making a bankruptcy code, he said.
The CEOs were appreciative of the Prime Minister’s development vision of economic development, and the progress made over the last 15 months, an official statement said.
“The Prime Minister highlighted his commitment for predictable, transparent and accountable governance. The CEOs expressed support for the Make in India, Skill India and Smart Cities initiatives,” it added.
Singh said some of the CEOs felt a lot of progress has been made in the last one year, but it has been inaccurately assessed and reported.
“If you look at the global trends, this was the unique opportunity to move ahead, attract capital and finds moments in terms of market access and ability to produce both for domestic and for exports,” he said.
“There was support and appreciation expressed for the Make in India program, the Skill India program and the work related to smart cities, the focus on renewable energy. Some emphasis on the needs in the infrastructure sector and appreciation for the way in which the concept of smart cities has been approached,” Singh added.
Swarup said the CEOs felt that change was “afoot and visible” which was reflected in their upbeat mood.
With India embarking on a massive defence modernisation programme, Modi has invited corporate leaders of America’s defence sector to manufacture in India.
“In the defence sector Prime Minister has been saying from the very beginning that our first top priority is that defence manufacturing should be make in India,” External Affairs Ministry spokesperson Vikas Swarup told reporters at a news conference here.
This is the message the Prime Minister conveyed to the Lockheed Martin Chairman Marillyn Hewson and other corporate leaders when he met them in various formats yesterday.
“We told them, India offers a huge market for you. India has all necessary facilities for manufacturing. There is a capable work force. We are ready to provide all required facilities for this. Defence manufacturing in India is a win win situation for both of us,” Swarup said.
During the one-o-one meeting with the Prime Minister Hewson said she is very committed to India.
In fact they already have a facility in Hyderabad in cooperation with the Tatas where they are manufacturing tail segment of C-130 cargo planes.
Swarup said she discussed aerospace industry with the Prime Minister.
It is well known that Lockheed wants to expand its manufacturing base in India in the aerospace industry and has been seeking a series of reforms from the Indian Government including increasing the 49 per cent cap on foreign direct investment in the defence sector.
Chairman and CEO of AECOM Mike Burke also called on Modi at his hotel for talks.
“The Prime Minister thanked him for the leadership that he has taken in developing the port of Dholera in Gujarat. And now they also have the contract for developing the smart city in Vizag,” he said.
AECOM currently employs some 2,500 people in India and plan is to double this.
AECOM is a global provider of architecture, design, engineering and construction services.
Former New York City Mayor Michael Bloomberg called on Modi during which they discussed on issues of sustainable development and smart cities.
“Thank you my friend Mike Bloomberg for one more insightful interaction on policy and global issues,” the Prime Minister said in a tweet after the meeting.
Bloomberg later tweeted that “leadership” of Modi is “changing” India and the world.
Known for his passion for clean energy and smart cities, Bloomberg in the past had talked to Modi on his ambitious projects of 100 smart cities and renewable energy.
According to the Prime Minister’s Office, Bloomberg shared his thoughts on several issues with Modi. (PTI)
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