|
The President of the United States India Business Council (USIBC), Ambassador Atul Keshap, welcomed India's Union Budget 2025 on Saturday, saying that India's economic reforms are crucial for strengthening commercial ties with the US.
Ambassador Atul Keshap further urged India to push for much more ambitious reforms in taxation, regulatory frameworks, and business procedures to enhance the country's global competitiveness and attract greater investment. "USIBC welcomes the presentation of the Union Budget 2025-26, which emphasizes crucial sectors like agriculture, MSMEs, investment, and exports, reinforcing India's role as a dynamic player in the global economy. As the world's fifth-largest economy and a critical partner in the Indo-Pacific, India's continued economic reforms are essential to strengthening commercial ties with the United States and unlocking new growth opportunities," Keshap said in a statement. "USIBC urges a more ambitious push for systemic reforms in taxation, regulatory frameworks, and business procedures to further enhance India's global competitiveness and attract greater investment," he added. USIBC welcomed the tax relief to the middle class and noted that the move would boost consumption, saving and investment. Finance Minister on Saturday announced tax relief to the salaried class with no income tax on annual salaries up to Rs 12.75 lakh. Additionally, Keshap expressed concern about the growth of Foreign Direct Investigation (FDI) in India. "While the budget outlines a vision for economic resilience, technological advancement, and global competitiveness, India's growth trajectory requires sustained and deeper reforms. Foreign direct investment remains steady but has not seen significant acceleration, and businesses continue to navigate complex regulatory landscapes," Keshap stated. Sitharaman announced that the FDI limit has been enhanced for insurance from 74 to 100 per cent and Jan Vishwas bill 2.0 will be introduced for decriminalising more than 100 provisions in various laws. Keshap pressed that a "balanced and transparent trade environment is vital to deepening U.S.-India economic ties." "In line with President Donald Trump's emphasis on fair and reciprocal trade, India can consider bolder steps to address structural bottlenecks and foster a more predictable policy environment that instils investor confidence and promotes long-term strategic partnerships. In this regard, the government's recognition of critical minerals as a strategic asset, along with a National Critical Minerals Mission and an allocation of Rs450 crore, for the forthcoming financial year is a small step in the right direction, but further significant efforts are needed to create a truly self-reliant supply chain," Keshap said. Keshap lauded India's commitment to the Nuclear energy field and mentioned its long-term success in streamlining regulatory approvals. "India's commitment to energy security is commendable, particularly the announcement of a Nuclear Energy Mission for Small Modular Reactors (SMRs) with an outlay of Rs20,000 crore. However, its long-term success will depend on streamlined regulatory approvals and a clear roadmap for private-sector engagement. Likewise, the National Manufacturing Mission, with its focus on high-value sectors such as solar PV cells, EV batteries, motors and controllers, electrolysers, wind turbines, and high-voltage transmission equipment, signals progress but requires greater policy certainty and ease of doing business to attract the necessary investment and technology partnerships," he said. The Finance Minister said amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act shall be taken up and a Nuclear Energy Mission for research and development of Small Modular Reactors (SMR) with an outlay of Rs 20,000 crore will be set up. The Nuclear Energy Mission aims to develop at least 100 gigawatts (GW) of nuclear energy by 2047, aligning with India's vision of becoming a developed nation under the "Viksit Bharat" initiative. (ANI)
|
