India has blamed the international lobbies in India for creating a perception that India is prohibiting foreign investment in sectors such as retail.
Reacting strongly to the US President Obama’s remarks that in too many sectors, such as retail, India limits or prohibits the foreign investment that is necessary to create jobs in both our countries, Minister for Corporate Affairs M Veerappa Moily cited the Vodafone tax case as catalyst for creating such impression about India.
"Certain international lobbies like Vodafone are spreading this kind of a story and Obama was not properly informed about the things that are happening, particularly when India's economic fundamentals are strong”, moily said in interview with PTI.
“Obama’s statement is based on misinformation and not on the factual grounds. There are lobbies working here (India) and there (the US), especially after the Vodafone retrospective tax controversy and the GAAR amendment, providing an impression that India has a deteriorating investment climate. Besides, Obama needs to concentrate on his nation, rather than worrying about India’s economy,” Moily said.
“In the US, the growth rate is zero per cent. So is the growth rate of Europe. India is growing at a steady pace. The fundamentals are not strong in the US or Europe, which is leading them from one economic downslide to another. There is no doubt that India’s climate is conducive for investment,” he said.