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PM Modi in US: Suggestions and kudos from CEOs |
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NEW DELHI: If PM Narendra Modi was looking for feedback on his government's steps to ease rules, he couldn't have asked for a better audience than 41 CEOs from top US corporations, who he met over an Indian dinner on Thursday.
While sceptics question the need for a free trade agreement with EU, Ford president & CEO Mark Fields told Modi the proposed treaty can help India develop as a low-cost production hub catering to the 28 member countries when manufacturing costs in the region are rising. Several CEOs are learnt to have pointed to the need to push Indian exports and use it as a manufacturing base to meet global demand, much the way China emerged as a factory to the world.
Most CEOs gathered at Vanderbilt Room of NY's Waldorf Astoria Hotel had suggestions based on feedback from their Indian arms. PepsiCo's India-born chairman & CEO Indra Nooyi said there was no need to reinvent food standards when global norms in the form of Codex were available, sources told TOI. Nooyi's comments came amid a recent controversy over steps taken by the Food Safety and Standards Authority of India, including a ban on Maggi for having higher than prescribed lead content.
Although sources said the dialogue was largely positive, with CEOs speaking "as if they had a stake in India's growth", there were concerns on issues ar ticulated in the past - from time taken in awarding contracts and licences to bringing about predictability, especially in the tax regime.
GE's vice-chairman John G Rice was among those who said the time taken to award tenders is too long. Rice probably was speaking from experience, for his company has waited nearly a decade to find out if it'd be able to enter a deal with railways to manufacture new-generation locomotives.
"The message was: If you've decided to do it, do it fast. For that, procedures must improve. Several CEOs said they don't want favours but need predictably and consistency, especially in the tax administration," said a source. During a meeting with financial sector bosses, concerns were raised over the proposed dividend distribution tax on Real Estate Investment Trusts. Several iterated the need for a healthy bond market.
At least three chief executives from the defence industry - Lockheed Martin, Boeing and Textron (makers of Bell Helicopters) - pointed out that changes to the offset policy would help boost local manufacturing. For instance, they want inclusion of services in the offset policy and have demanded that even for old contracts, overseas players be allowed to rope in local players. DuPont apparently told Modi about its interest in manufacturing body armours for the Indian Army , while working on improving farm productivity .
The heads of Marriott and Starwoods, which owns the Sheraton brand, flagged the issue of long time taken in getting approvals, while seeking infrastructure status for the industry . PayPal sought an increase in broadband penetration, said sources.
Source : timesofindia.indiatimes.com
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