More thins to do in trade.
Richard Rossow, Senior Fellow and Wadhwani Chair in US-India Policy Studies Center for Strategic and International Studies (CSIS) said that the growth of Indian economy lies in the hands of states.
“The government is silently empowering states in its own unique way. State-wise ranking is promoting healthy competition and the government is providing tools and engaging with state governments more than before. While the government is determined to bring growth, the answer to India’s growth story lies in the states’ hands,†Rossow said in an interview with The Times of India.
Though the government under the leadership of Prime Minister Narendra Modi, has taken several steps towards liberalizing the economy, there is still more things to do, especially in trade.
“While his pro-investment agenda is yet to find ground on trade liberalization, it is very clear that files have moved. The amended FDI norms, sectoral liberalization, the passage of GST are all positive changes. There is still work to do when it comes to trade and I strongly believe India’s strength lies in services – IT, financial services and entertainment,†said Rossow.
According to Rossow, the increased attention towards small businesses is a good sign. But, several changes in the regulatory system are required for small companies from the US to come to India and set up business.
Rossow added that more reforms are needed in Foreign Direct Investment (FDI) in e-commerce and brick and mortar retail.
“There is talk about allowing international law firms to practice in India and we are looking forward to hearing more reforms when it comes to FDI in e-commerce and brick and mortar retail. There has definitely been sectoral impact such as liberalization of telecom, coal, insurance to name a few,†said Rossow.
“In a country where land and labor is paralyzed and GST is done, what will be the next big thing for the government to tackle is the question,†he added.