US CEOs seek faster reforms; PM promises speedier decisions

Source: PTI

Prime Minister Narendra Modi with the leading Fortune 500 CEOs, at a special event in New York on September 24, 2015.

  Top American CEOs have sought “additional steps” to speed up economic reforms in India, to which Indian Prime Minister Narendra Modi promised to fast-track the decision-making process as he asked them to take advantage of the huge opportunities of investing in the country. “Please continue to do more what you are doing. May be slightly faster,” the 42 CEOs of American companies with collective net worth of $4.5 trillion, told the Prime Minister. “By and large the mood was very upbeat. There is general consensus that the Prime Minister is effecting change in India. The only thing all the CEOs said is that please make that change faster,” External Affairs Minister spokesperson Vikas Swarup told reporters after the meeting. 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%.” “This reflects confidence in the Indian economy,” Modi said while interacting with the CEOs from the manufacturing and infrastructure sectors. 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 Co Chief Indra Nooyi and Dow Chemical Chairman Andrew Liveris. 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,” he added. 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. “That note is based on hard facts, on what the government has actually done, what it has done for ease of doing business, where we all expect that when the next report comes, India should have jumped several places up,” Swarup said. The fact sheet also listed efforts made by the government in increasing FDI, efforts towards making a bankruptcy code, he said. The CEOs were appreciative of the Prime Minister's development vision of economic development, and the progress made over the last 15 months, an official statement said. “The Prime Minister highlighted his commitment for predictable, transparent and accountable governance. The CEOs expressed support for the Make in India, Skill India and Smart Cities initiatives,” it added. Singh said some of the CEOs felt a lot of progress has been made in the last one year, but it has been inaccurately assessed and reported. “If you look at the global trends, this was the unique opportunity to move ahead, attract capital and finds moments in terms of market access and ability to produce both for domestic and for exports,” he said. “There was support and appreciation expressed for the Make in India program, the Skill India program and the work related to smart cities, the focus on renewable energy. Some emphasis on the needs in the infrastructure sector and appreciation for the way in which the concept of smart cities has been approached,” Singh added. Swarup said the CEOs felt that change was “afoot and visible” which was reflected in their upbeat mood.  

September 25, 2015 | 4:36pm IST.