Businesses across the globe are poised to contribute to India’s economic growth and job creation agenda under Prime Minister Modi’s second term. U.S. companies, with a rich history of long- term investment in India, are optimistic about India’s growth potential and are committed to India’s future.
In his second term, Prime Minister Modi now has the opportunity to continue the momentum for improving the country’s doing business environment. In partnership with our members, we have recognized some immediate priorities that the Government can undertake to achieve some tangible results to allow businesses to thrive.
- India’s rapid progress in ease of doing business has put it on par with Vietnam and Indonesia (though still below both), and India could rapidly improve to be on par with Malaysia and Taiwan in the global Top 20 during PM Modi’s second term.
- Currently, India’s corporate tax structure is a barrier to investment in both the manufacturing and services industries; India can improve on this by lowering the overall corporate tax rate, reforming the tax appeals process, and stabilizing the Good and Services Tax (GST) regime.
- Other key recommendations for improving India’s business environment include government procurement and regulatory reforms; adopting a digital policy framework that ensures open flow of data but protects personal information; easing market access restrictions; liberalizing policies currently limiting FDI; and strengthening intellectual property rights.
- The report also provides policy recommendations for agricultural reforms and food security, defense and national security, infrastructure development, sustainable solutions for growing energy demand, and other issues.