Millennium Post

Obama announces $4 bn govt backed investments to India

US President Barack Obama on Monday announced $4 billion in government-backed investments and lending to India, as he sought to scale up a trade relationship he said was “defined by so much untapped potential”.

At a CEO summit hosted by Prime Minister Narendra Modi in New Delhi, Obama said that US Export-Import Bank would finance $1 billion in exports of ‘Made-in-America’ products.

The Overseas Private Investment Corporation will lend $1 billion to small- and medium-sized enterprises in underserved rural areas of India.

Another $2 billion will be committed by the US Trade and Development Agency for renewable
energy, Obama said in a speech.

Obama said there were still too many barriers to doing business in India as he hailed moves by Prime Minister Narendra Modi to cut red tape.

“There are still too many barriers, hoops to jump through,” Obama said in an address to a group of United States and Indian CEOs in New Delhi.

“We hear this consistently from business leaders such as you,” Obama added, speaking alongside Modi.

Obama emphasised the importance of Indo-US relations, saying, “Even as this visit is rich with symbolism, it is also rich with substance. India and US can grow and prosper together.”

“US exports to India are substantial; Indian investments  in US are growing as well. Our growing trade relations are also a win for India. Both Indian and US workers are benefitting from the ties,” Obama said.

Stating that there is a lot of ‘untapped trade potential’, Obama said, “PM Modi agrees that there is a lot of scope to improve the trade relations. We have to focus on making doing business easier in both our countries.”

“We can work together to develop technologies that will help India move forward. US is ready to help in broadband connectivity; build better roads.”

“We need to make sure that economic growth in both India and US is inclusive,” Obama added.
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