The Goods and Services Tax (GST) bill was recently passed in both Rajya Sabha and Lok Sabha. Moreover, few states also passed the GST bill with Assam leading the front. Commenting on the GST bill, US Ambassador to India Richard Verma revealed that bilateral trade between India and the US has reached USD 109 billion. Moreover, it will get a further boost with the passing of unique reforms like GST. It’s true that American companies have issues related to business climate in the fast-growing economy. However, with the implementation of reforms like GST, these concerns will be removed from the minds of investors.
The US added that Indo-American trade has broken every record from defence to agriculture. Moreover, the recent reforms in India such as the GST will enhance the economic ties between the two nations. On the defence front, both countries did $15 billion in business. Both countries were also successful in finalizing $6 billion agriculture trade.
Recent passage of bills a big boost to Indian economy
Speaking to reporters on the side lines of the USA-India Innovation Forum in New Delhi, Verma said that the recent reforms such as the passage of the GST Bill, Bankruptcy Code, and National Intellectual Property Rights (IPR) policy including relaxation of foreign direct investment (FDI) norms would immensely push the economic ties between the two countries. He said that India is currently working on simplifying ease of doing business. Furthermore, states are competing with each other to grab the attention of investors.
IPR environment should change
He said that an enhanced IPR environment is required in India. This is because he often heard from investors about the need for better IPR. Verma, while interacting with media, disclosed that the business culture should change in India focusing on industrial financing from private parties.
To stimulate innovation and entrepreneurship, Verma also emphasized on the growing need to provide support across genders. He said that people should be provided with greater and equal opportunities.
Responding to reporters, US Commerce Secretary Penny Pritzker added that travel and tourism have been identified as two key focus areas. This will drive commercial cooperation between the two countries in 2017. Pritzker will be on a 3-day visit to India starting August 29.