In India's interest to improve business climate to attract more FDI: US official

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 today.

"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.