New Delhi/Washington, Feb 1 (IANS): A balanced and transparent trade environment is vital to deepening US-India economic ties and 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 instills investor confidence and promotes long-term strategic partnerships, the US-India Business Council (USIBC) said on Saturday.
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 US and unlocking new growth opportunities, said Ambassador Atul Keshap, President of the US-India Business Council (USIBC).
"USIBC welcomes the presentation of the Union Budget 2025-26, which emphasises crucial sectors like agriculture, MSMEs, investment, and exports, reinforcing India's role as a dynamic player in the global economy," Keshap emphasised.
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. 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," Keshap noted.
USIBC welcomed the plan to set up a high-level committee for regulatory reforms but urged a quick movement to identify and remove regulations detrimental to business.
"A cut in taxes for the middle class is also welcome as the move will help boost consumption, savings and investments," said the Council.
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 Rs 450 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.
"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 Rs 20,000 crore," said USIBC.
However, its long-term success will depend on streamlined regulatory approvals and a clear roadmap for private-sector engagement, it added.
"We also welcome the creation of a geospatial mission, a segment that aligns with core India talent and capabilities, and an area of potential collaboration with the United States, a global leader in geospatial data creation, analysis and use," according to USIBC.
Similarly, while the proposed increase in FDI limits for the insurance sector from 74 per cent to 100 per cent is promising, review of guardrails and conditionalities associated with foreign investments in the insurance sector will help to maximise investor interest in this sector.
"USIBC is actively engaging with stakeholders to identify key pain points affecting businesses in US-India corridor and provide informed recommendations that will help both governments enhance commercial flows in both directions," said Keshap.