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India must push reforms: Obama
Refers to retail, says New Delhi limits FDI in too many sectors

Only India, Pak can solve K-issue Ruling out any solution from “outside” to the Kashmir issue, US President Barack Obama underlined that disputes between India and Pakistan could only be resolved by the two countries themselves. "It is not the place of any nation, including the United States, to try to impose solutions from the outside," he said.

Obama misinformed: Govt Bangalore/New Delhi: Responding to Barack Obama remarks, the government on Sunday said the US President was not properly informed about the country's strong economic fundamentals. “Obama was not properly informed. Certain international lobbies were spreading false stories about India,” said Corporate Affairs Minister Veerappa Moily.

Washington, July 15
Noting that India prohibited foreign investment in too many sectors such as retail, US President Barack Obama today cited concerns over the deteriorating investment climate there to endorse another “wave” of economic reform.

Still sounding positive on the Indian economy, “which continues to grow at an impressive rate”, he said that to some extent, India's slower growth was a reflection of the larger slowdown in the global economy.

The US President answered a wide range of questions on the state of the Indian and global economy, Indo-Pak ties and American strategy in the Asia-Pacific region. He was careful not to be directly critical of the negative investment climate in India, but cited the concerns of the American business community to make his point.

Many in the American business community -- “one of the great champions of the US-India partnership” -- have expressed concern that the investment climate in India was deteriorating, he said.

“They tell us it is still too hard to invest in India. In too many sectors, such as retail, India limits or prohibits foreign investment that is necessary to create jobs in both our countries, and which is necessary for India to continue to grow,” Obama said.

Refraining from prescribing a solution to India's economic difficulties, the President said, “It is not the place of the United States to tell other nations, including India, how to chart its economic future. That is for Indians to decide.” Obama noted that “there appears to be a growing consensus in India that the time may be right for another wave of economic reform to make India more competitive in the global economy”.

Obama then went on to add, “…And as India makes the difficult reforms that are necessary, it will continue to have a partner in the United States. It is important, though, to put this in the context of India's incredible growth and development in recent decades,” he said.

The President pointed out that India had lifted tens of millions of people out of poverty to create one of the world's largest middle classes. “Indian innovation is an engine of the global economy. And even with the recent challenges, the Indian economy continues to grow at an impressive rate. The Indian people have displayed a remarkable capacity to meet India's challenges,” he said.

Describing Prime Minister Manmohan Singh as “my friend and partner with whom I have worked closely”, Obama said he valued the insight of the Indian leader at various international for a, including the recent G20 meeting in Mexico.

He said at the G20, they agreed that one of the best things they could do to get the global economy growing faster was to renew the focus on growth and job creation in their own countries.

“That's my priority in the US. Of course, one of the most effective ways we can create jobs is to continue expanding trade and investment, including between the US and India.”

The President said they needed to keep strengthening the pillars of long-term economic vitality and competitiveness, including the education of the people of the two countries, science and technology, and the modern infrastructure that allows them to move goods and services faster. — PTI