‘You can rely on me,’ Modi tells corporate USA
26 Sept 2015 6:37 AM IST
As top American chief executive officers (CEOs) held no punches about the “obstacles” in ease of doing business in India, Prime Minister Narendra promised to fast-track the decision-making process, acknowledging that “the world is not going to wait for us”. At a dinner hosted by Fortune magazine where 42 CEOs of manufacturing and infrastructure sectors were not “shy” in referring to a host of obstacles, he asked them to take advantage of the huge opportunities of investing in India.
“Please continue to do more of what you are doing. <g data-gr-id="51">May be</g> slightly faster,” CEOs of American companies with a collective <g data-gr-id="50">networth</g> of USD 4.5 trillion, told the Prime Minister. Fortune Editor Alan Murray, who moderated the discussion, said complicated regulations, excessive permitting, confusing bureaucracy, poor infrastructure and overlapping local taxes were raised by the CEOs who urged the Prime Minister to “pick up the pace of change”.
They praised the Prime Minister’s efforts to improve the climate for <g data-gr-id="57">business,</g> while highlighting the obstacles. One of them said, “It is not an easy place to do business.” The Prime Minister acknowledged their concerns and pledged to speed up efforts to reduce the role of the government in business. “The world is not going to wait for us. I know <g data-gr-id="56">that,</g>” Modi said, according to a newsletter issued by Murray.
“The high turnout of the CEOs highlights the prime position India holds in today’s global economy. With China slowing, India’s 7.5 per cent growth rate makes it the fastest growing major economy in the world today and many of the CEOs cited plans to expand there,” Murray added.
External Affairs Ministry spokesperson Vikas Swarup told reporters after the meeting, “By and large the mood was very upbeat. There is <g data-gr-id="62">general</g> consensus that the Prime Minister is <g data-gr-id="63">effecting</g> change in India. The only thing all the CEOs said is that please make that change faster.”
The CEOs present at the meeting included Lockheed Martin Chairman and CEO Marillyn Hewson, Ford President and CEO Mark Fields, IBM Chairman Ginni Rometty, Pepsi <g data-gr-id="52">Co Chief</g> Indra Nooyi and Dow Chemical Chairman Andrew Liveris.
During the ‘Roundtable with American Inc’, the Prime Minister listened to each one of the CEOs present in the room about their concerns and plans for India and how these issues can be resolved, he said. Inviting the US companies to set up manufacturing units in India, Modi told them, “Reform in governance is my No 1 priority. We are for simplified procedures, speedy decision making, transparency and accountability.”
He also listed the sectors that have been opened up in India for investment and said that “FDI all over the world has fallen but in India it has increased by 40 <g data-gr-id="45">per cent</g>. This reflects confidence in the Indian economy,” Modi said while interacting with the CEOs from the manufacturing and infrastructure sectors.
Briefing reporters about the day-long interactions that the Prime Minister had with the corporate world, Indian Ambassador to the US Arun K Singh said there were some suggestions made about “additional steps that can be taken in terms of ease of doing business. “Those are things that the government would assess.”
Modi told the CEOs that fundamentally he believes in deregulation, the government should allow the private sector to develop and that he is for predictable, transparent and accountable governance. Singh said that it came through clearly that most people felt that this was a very good moment for India in the global context.
During the meeting, Modi circulated a one-page fact sheet summarising the steps taken for deregulation, reforms and bringing consistency in the tax administration.
PM urges American defence industry to ‘Make in India’
With India embarking on a massive defence <g data-gr-id="141">modernisation</g> programme, Prime Minister Narendra Modi has invited corporate leaders of America’s defence sector to <g data-gr-id="179">manufacture</g> in India. “In the defence sector Prime Minister has been saying from the very beginning that our first top priority is that defence manufacturing should <g data-gr-id="178">be make</g> in India,” External Affairs Ministry spokesperson Vikas Swarup told reporters at a news conference here.
This is the message the Prime Minister conveyed to the Lockheed Martin Chairman <g data-gr-id="142">Marillyn</g> Hewson and other corporate leaders when he met them in various formats. “We told them, India offers a huge market for you. India has all necessary facilities for manufacturing. There is a capable <g data-gr-id="143">work force</g>. We are ready to provide all required facilities for this. Defence manufacturing in India is a <g data-gr-id="144">win win</g> situation for both of us,” Swarup said.
During the <g data-gr-id="139">one-o-one</g> meeting with <g data-gr-id="172">the Prime</g> Minister Hewson said she is very committed to India. In <g data-gr-id="171">fact</g> they already have a facility in Hyderabad in cooperation with the Tatas where they are manufacturing tail segment of C-130 cargo planes.
Swarup said she discussed <g data-gr-id="167">aerospace</g> industry with the Prime Minister. It is well known that Lockheed wants to expand its manufacturing base in India in the aerospace industry and has been seeking a series of reforms from the Indian government including increasing the 49 <g data-gr-id="140">per cent</g> cap on foreign direct investment in the defense sector.
Chairman and CEO of AECOM Mike Burke also called on Modi at his hotel for talks. “The Prime Minister thanked him for the leadership that he has taken in developing the port of Dholera in Gujarat. And now they also have the contract for developing the smart city in Vizag,” he said. AECOM currently employs some 2,500 people in India and plan is to double this.
AECOM is a global provider of architecture, design, engineering, and construction services. Former New York City Mayor Michael Bloomberg called on Modi during which they discussed on issues of sustainable development and smart cities.
“Thank <g data-gr-id="168">you my friend</g> Mike Bloomberg for one more insightful interaction on policy and global issues,” the Prime Minister said in a tweet after the meeting. Bloomberg later tweeted that “leadership” of Modi is “changing” India and the world.
Known for his passion for clean energy and smart cities, Bloomberg in the past had talked to Modi on his ambitious projects of 100 smart cities and renewable energy. According to the Prime Minister’s Office, Bloomberg shared his thoughts on several issues with Modi.
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