India's external affairs minister S M Krishna Tuesday sought to assuage the foreign investors' concerns over the country's economic growth. Speaking at the end of the daylong annual conference of the US India Business Council (USIBC) in Washington, Krishna said that the government was committed to economic reforms to restore investors' confidence.
These sentiments are not new. Over the past two decades of extraordinary change in the Indian economy, there have been periods when the growth seemed to lose its steam and the agenda of reform seemed to slow. In an era of global interdependence, not everything is within the powers of national governments. But we are confident we will restore investor confidence and regain momentum and growth, Krishna said in his speech, PTI reported.
Krishna responded to the criticism of the American business houses and economists over the policy gridlocks in the country and said that global turbulence and volatility along with policy challenges had negatively affected the country's growth rate.
Investor sentiment is an all-time low in India as economic slowdown, government inaction in economic policy front, a depreciating rupee and volatile markets resulted in heavy foreign fund outflow.
Investors and industry leaders have demanded strong actions from the government to boost the economic growth. However, political considerations have taken an upper hand over economic considerations as the Congress-led UPA government is battling scandals and domestic pressures.
Reacting to the challenges in Indo-US business relations, Krishna said that economic engagement between both the countries would grow further. Our trade in goods and services has reached a milestone by crossing 100 billion US dollars last year. India has been one of the fastest growing destinations for US exports, he said, according to the PTI report.
I also have great confidence in the future of India-US economic partnership. I know that this is a time when a degree of skepticism has entered into the sentiment of the business on both sides. I am aware of the concerns of the US businesses; USIBC has been forceful in articulating them! the minister added.