'Big bang' reforms, says America Inc

Corporate America has applauded the Indian government's decision to open up multi-brand retail, aviation and other sectors for foreign direct investment, saying that it would help create a "predictable investment and business climate".

"The reforms approved by the Cabinet today are a welcome signal to investors everywhere," said Ajay Banga, chairman of US India Business Council (USIBC) and president & CEO of MasterCard Worldwide.

USIBC applauds the government's bold actions that will help create a predictable investment and business climate, he said.

"These big bang reforms send a crystal clear signal that India is open for business," said Ron Somers, USIBC president.

"Opening the multi-brand retail sector to foreign direct investment will drive the modernisation of India's expansive agri-retail marketplace," he said adding that India's supply chain infrastructure will see improved efficiencies and expertise, consumers will benefit from increased quality and choice, and inflation and rising food costs will be tamed.

USIBC said, the government decision to allow foreign carriers to buy a 49 per cent stake in Indian private airlines comes at a crucial time following heavy losses borne by many of India's carriers this past fiscal year.

Raising the equity cap presents an opportunity for US carriers to be a part of India's remarkable growth in passenger traffic over the next decade.

Welcoming the Indian decision to raise FDI in broadcast-carriage services to 74 per cent from 49 per cent previously, USIBC said this will provide industry with the leverage it needs to help fund India's digitization plan.

USIBC further welcomes the decision to permit foreign investment of up to 49 per cent in power trading exchanges.

India's power exchanges will benefit from the introduction of global best practices, new technology, and capital infusions, which will facilitate the transfer of power from surplus to deficit regions and improve grid stability and reliability.

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