Nancy J. Powell, the US Ambassador to India, on Tuesday said that high tariff and non-tariff barriers are preventing India from accessing latest technologies.
Higher growth will require “more economic opening” and “more foreign investment”, she said.
Even while applauding the “efforts of the Government”, the US Ambassador claimed that “there is more to do” for India to return to an annual growth rate of 10 per cent.
“Since GDP growth is not an end in its own right, the ultimate goal is to raise the standards of living and to eradicate poverty, opening the economy and bringing in more foreign investment take on a new urgency. You cannot defeat poverty without growth,” Powell said during an interactive session at the Bengal Chamber of Commerce and Industry (BCCI) here.
For eradication of poverty, opening up the economy and bringing in more foreign investment are the prerequisites.
In 2012, India-US bilateral trade stood at $93 billion.
High tariff and non-tariff barriers in India are another area of concern, she said.
Such barriers, Powell claimed, are “preventing” the country from obtaining the “latest and best” technology or the most advanced equipment. With American companies unable to compete in a high tariff or non-tariff regime, the loss is India’s.
“India loses because American companies do not get a chance to compete, because India does not receive the much-needed capital to grow, and because the best products, technology and prices that the world has to offer remain out of reach,” she said.
Infra, Insurance
Strengthening regional connectivity through infrastructure with the neighbouring nations, such as Bangladesh and Burma, would help India gain access to new markets. This, Powell said, can be possible through the opening up of the insurance sector.
Flow of funds are likely to help the cash starved infrastructure sector of the country.