India is prohibiting FDI in retail: Obama

US President Barack Obama says investment climate in India is deteriorating;says its time New Delhi takes a consensus and brings about another wave of economic reforms

WASHINGTON Expressing concern over the world economy,US President Barack Obama on Sunday said that the investment climate in India was deteriorating,and its time India brings about some economic reforms.Citing fears of the US business community,Obama 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 countries,and which is necessary for India to continue to grow.
The US president,however,was carefulnottobedirectlycriticalofthe negative investment climate in India.Making some positive comments about Indias economy,he said,Indias economy continues to grow at an impressive rate.Indias slower growth is a reflection of the largerslowdownintheglobaleconomy.
Refraining from prescribing any solutions for Indias economic difficulties,Obama 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 the Indians to decide.
He said that there is a growing consensus that its time to bring about another wave of economic reforms in India to make it more competitive in the global economy.
TheUSpresidentpointedoutthat India had lifted tens of millions of people out of poverty to create one of the worlds 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 insights of the Indian leader at various international platforms,including the recent G20 meeting in Mexico.
He said at the G20 meet,they agreed that one of the best things theycoulddotogettheglobaleconomy growing faster was to renew the focus on growth and job creation in their own countries.Thats 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.
Obama said that India and US needs to keep strengthening the pillars of the long-term economic vitality and competitiveness,including the education of the people,science and technology,and the modern infrastructure that will allow them to move goods and services faster.
We need to keep up the fight against corruption,which stifles innovation and is one of the biggest barriers to job creation and economic growth around the world.These are some of the things we can do together as global partners, he said.AGENCIES