US Ambassador Eric Garcetti Calls for India to Open Doors for Trade and Investment

In a bold move, US Ambassador Eric Garcetti urged India to reform its investment, intellectual property, export, and taxation regimes to unlock the full potential of the Indo-US economic relationship. Speaking at an event on “Strengthening Indo-US Relationship in Amritkal-Aatmanirbhar Bharat,” Garcetti acknowledged the rapid advances but argued that bureaucratic hurdles, opaque policy, and a focus on self-reliance could be stalling progress.

Barriers to Investment:

• Export controls and policy: Garcetti identified these as key areas requiring change for India to achieve its economic goals. He believes current policies make it harder for US companies to access the Indian market.
• FDI flow: Highlighting the lag in attracting FDI compared to countries like Vietnam, he called for streamlining regulations and improving ease of doing business.
• Taxation: Garcetti described the corporate tax regime as “opaque” and advocated for greater transparency and stability to attract American investments.
• Intellectual property: Weak enforcement of IP rights was another concern raised by the ambassador. He emphasized that strong IP protection would incentivize investments from both sides.

Moving Beyond Self-Reliance:

While acknowledging India’s desire for self-reliance (Aatmanirbhar Bharat), Garcetti cautioned against an inward-looking approach. He envisions a partnership where Indian companies compete globally and invest in the US, creating a mutually beneficial “relationship of equals.”