The US said in its state department report of 2021 that India “remains a challenging place” to do business, the United States said, urging it to foster an attractive and reliable investment environment by reducing barriers to investment and minimizing bureaucratic barriers.
The state department report”2021 investment Climate Statements: India” released on 21 July 2021, Wednesday, said that India “remains a challenging place to do business" and the report also had references to the two controversial decisions of the Current NDA Regime. First is the abrogation of the special status to the state of Jammu and Kashmir and then the Citizenship Amendment Act.
"New protectionist measures, including higher tariffs, procurement rules that restrict competitive choices, non-science-based sanitary and phytosanitary measures, and specific Indian standards that are inconsistent with international standards, isolate producers from the global supply chain, and restrict the expansion of bilateral trade.," the report said.
The State Department said that in response to the economic challenges created by the Corona pandemic and due to which a nationwide lockdown was imposed, India passed various social welfare and economic incentive programs and increased spending on public services and public health.
The government has also introduced production-related incentives to promote manufacturing in the pharmaceutical, automotive, textile, electronic, and other industries. These measures have enabled India to recover from a GDP decline of around eight percent between April 2020 and March 2021, with positive growth returning to January 2021.
In 2021 February, the finance minister announced that raising $2.4 billion through a privatization program would reduce the government’s role in the economy and make it more capitalistic in nature.
In March 2021, Parliament further liberalized India's insurance sector, increasing the Foreign Direct Investment (FDI) limits to 74 percent from 49 percent, though still requiring a majority of the board of directors and administrative staff to be Indian citizens., said the report.
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