'In India's Interest to Improve Biz Climate to Attract More FDI'.

Chennai: With India ranked 132 in a World Bank report on business environment, it is in the country's interest to improve the business climate to attract more Foreign Direct Investment,a senior US official said Monday.

"The world over countries are increasingly creating an attractive business climate because they want to attract investment. So its less a concern for US and more a concern for India to make sure it remains competitive in attracting FDI," Under Secretary of Commerce for International Trade,Francisco Sanchez,said.

"Currently I think India ranks around 132 on the World Bank ease of doing business. It is in India's interest to improve its business climate so it can attract investment and help continue grow its economy," he told reporters.

Sanchez is leading his department's first-ever ports and maritime trade mission to India and will be touring Mumbai and Ahmedabad to "introduce stakeholders to each other."

Sounding positive on Indo-US bilateral trade,he however said his nation currently has a trade deficit with India,but that two way trade has been steadily increasing and that there is room to grow. Part of his trip was to help continue growth of this two-way trade relationship,he said adding growth projections would allow growth in two-way trade.

During his meeting with local officials,he is scheduled to take up issues,including upgrading port facilities.

"I will also share concerns of US companies that have a presence here--one that I have heard is the sheer need to upgrade your port facilities. There is a lot of congestion and if that isn't solved,it could inhibit growth,especially in the auto industry," he said.

On India's infrastructure needs and plans to develop in this area,Sanchez said there would be 65 cities with a population of more than a million by 2030 and envisaged opportunities for his country's firms delivering products and services in this area to meet requirements like power generation and waste-water treatment,among others.

To a question,he said the government would not be involved in any such projects but would support US firms interested in doing business in India.

"We are also believers in an open economy. And so any restrictions that have the effect of limiting the very best technology from coming into your country is of concern to us. We believe that's not the best way to foster a local industry," he said.

On processing of business visas,he said while the matter did not come under his purview,"we can do better." The US had taken steps to improve processing of visas,he added.

He also expressed happiness over his country's economy moving in the right direction, saying unemployment rate had come down while manufacturing was on the upswing.

Source : zeenews.india.com