Modi government 'slow' to match its rhetoric on reforms: US

July 06, 2016 09:22

Underlining that India's 7.5 per cent growth rate may be "overstated", the US has said the Narendra Modi government has been "slow" to match its rhetoric in economic reforms even as it appreciated measures taken by it in areas like bureaucracy and easing FDI restrictions.

The US State Department in a report on Tuesday said the Modi government has been slow to propose other economic reforms that would match its rhetoric.

Noting that many of the reforms it did propose have struggled to pass through Parliament, the report "Investment Climate Statements for 2016" said that this has resulted in many investors retreating slightly from their once forward-leaning support of the BJP-led government.

For example, the government failed to muster sufficient political support on a land acquisition bill in Parliament -- all but ending its chance of passage in the near term -- and is still negotiating with opposition parties the details of a Goods and Services Tax Bill, which if not watered down in negotiations, could streamline India's convoluted tax structure and provide an immediate boost to GDP.

"Ostensibly, India is one of the fastest growing countries in the world, but this depressed investor sentiment suggests the approximately 7.5 per cent growth rate may be overstated, said the report produced by the Bureau of Economic and Business Affairs of the State Department and US industry on IPR in 2015.

Despite progress, the Indian economy is still constrained by conflicting rules and a complex bureaucratic system that has broad discretionary powers, the report said.

"India has a decentralized federal system of government in which states possess extensive regulatory powers. Regulatory decisions governing important issues such as zoning, land-use, and the environment vary between states. Opposition from labour unions and political constituencies slows the pace of land acquisition, environmental clearances, and investment policy," it said.

« Back to LIVE

TOP STORIES

TMC's Sandeshkhali sting: BJP leader moves HC

Bharatiya Janata Party's Sandeshkhali leader Gangadhar Koyal on Friday moved the Calcutta high court, claiming that technology-aided videos mimicking his voice were being circulated in a bid to defame him, and prayed for security be...

'Sufficient evidence': Delhi court orders framing of charges against Brij Bhushan

A Delhi court on Friday ordered framing of charges against former Wrestling Federation of India chief and BJP MP Brij Bhushan Sharan Singh in a sexual harassment case lodged by six female wrestlers.

Excise case: ED names K Kavitha in fresh charge sheet

The federal agency had arrested 46-year-old Kavitha, the daughter of former Telangana chief minister K Chandrashekar Rao, from her Banjara hills residence in Hyderabad on March 15.

'Shah Rukh Khan has made a huge impact, very understanding'

Kolkata Knight Riders wrist spinner Varun Chakravarthy on Friday said team owner Shah Rukh Khan has made a "huge impact" with his motivational speeches when the chips were down in the ongoing IPL.

Kejriwal granted 21-day interim bail by SC, but can't go to office

The SC said Kejriwal will have to surrender and go back to jail on June 2.