India’s Minister of Commerce and Industry Piyush Goyal said that India will now have a 74% FDI (Foreign Direct Investment) allowed through the automatic route in insurance, which the United States had specifically requested.
India’s Minister of Commerce and Industry Piyush Goyal on Wednesday while speaking at the annual US-India Business Council’s State of US-India Business Summit invited the United States to consider India as a manufacturing base while highlighting the need to strengthen the bilateral trade and economic engagement with a good deal of flexibility.
Goyal said: “India looks forward to working very closely with the new US administration to strengthen the ever-expanding ties in a variety of areas. We need to further India-US trade and economic engagement with greater degree of flexibility.” He said that India has set a target of half a trillion-dollar, which can be achieved through continuous engagement between the two countries.
Goyal welcomed US firms to consider India as a manufacturing base from where they can serve a large Indian market as well as serve global markets through cost-competitive products. He stated that India’s reform in the “defense, mining, labor, and agriculture sector will open up new opportunities for the American companies” He said that India will now have a 74% FDI allowed through the automatic route in insurance, which the United States had specifically requested. He added that it will help insurance companies boom in India.
Goyal said that the two countries complement each other. He said: “While the US offers technology, finance, and innovation, India has a large market that needs to be served. At the same time, we need to protect people in agriculture and protect them from low-quality products.”
Goyal welcomed the news of the United States joining the Paris Agreement. “As democracies wanting to give a better future to our people, we have a lot of synergy in our thinking. I am delighted to hear that the new administration has re-joined the Paris Agreement,” he said. He also outlined that India is interested in expanding into digital space with the United States but noted the responsibility to the netizens of the country for data privacy.