Vibrant Gujarat Summit: USIBC welcomes India, US deciding to speed up bilateral investment treaty

WASHINGTON: A leading business body here has welcomed the decision of India and the US to speed up negotiations on bilateral investment treaty (BIT), saying this would create the necessary business-friendly environment and significantly increase investment flows to India.

The US-India Business Council ( USIBC), a premier business advocacy organisation representing more than 300 of the largest global companies investing in India said this after a meeting Secretary of State John Kerry had with American corporate leaders in Ahmedabad on the margins of the Vibrant Gujarat Global Investors Summit.

"A bilateral investment treaty (BIT) between India and the US would create this environment and significantly increase investment flows," Acting President, USIBC, Diane Farrell, said in a statement.

The meeting organised by the USIBC also discussed about the upcoming visit of President Barack Obama to India as a chief guest during the Republic Day celebrations in New Delhi.

Kerry also met with Prime Minister Narendra Modi during the Summit, and the two leaders discussed a whole host of issues.

US industry applauds the Secretary's focus on economic issues, including his leadership in forging the way for a US -India bilateral investment treaty (BIT), USIBC said.

"USIBC is delighted to know that the BIT was discussed between Prime Minister Modi and Secretary Kerry at Vibrant Gujarat. When making investment decisions, companies need an environment that is predictable, transparent and consistent.

"A bilateral investment treaty between India and the US would create this environment and significantly increase investment flows," Farrell said.

Earlier in the meeting, Under Secretary of State for Economic Growth, Energy, and the Environment, Catherine Novelli held a breakfast roundtable with senior executives representing a broad spectrum of sectors.

US Ambassador to India Richard Verma, US Consul General from Mumbai Tom Vajda, among others, attended the meet.

Among top priorities discussed, USIBC members felt that tax, labour and land reforms, long-term infrastructure financing, movement of capital and increasing FDI in key sectors would increase investments in India.

It was suggested that the definition of Research and Development be broadened to spur further innovation in order to leverage the full potential of the talent pool India has to offer.

"The US business community is very excited that Obama is making history by visiting India for the second time during his presidency. We are keen to leverage the president's visit to push for a deeper partnership. Initiatives like Make In India, Digital India, and Smart Cities are just some of the great opportunities where US companies can truly partner in India's growth," Farrell said.