Despite the United States being the largest economy in the world and an innovation hub, the country still isn’t the top source of Foreign Direct Investment (FDI) into India.
Responding to a query from The Hindu about why the United States isn't the top source of investment, South Carolina Governor Nikki Haley said that the U.S. is looking to bring more American companies in India to do business. However, Ms Haley said there are certain challenges in India where American companies have realised that they need to know people in the government to be successful and get the things done.
“That is scary for them. That is scary for the fact that government is much more powerful in India than it is here (the U.S.). Here we are servants,” said Ms. Haley to a group of journalists at her office in Columbia, South Carolina. “If you have to know someone in the government to be successful, that makes American companies nervous.”
Foreign Direct Investment inflows into India increased by 29 per cent to $40 billion during the financial year 2015-2016 ended March as against $30.93 billion in 2014-2015, according to data from the Department of Industrial Policy and Promotion (DIPP).India received $13.69 billion overseas inflows from Singapore, followed by Mauritius ($8.35 billion), the U.S. ($4.19 billion), the Netherlands ($2.64 billion) and Japan ($2.61 billion).
Asked about her views on some protectionist measures in various industries in the U.S, Ms. Haley said she has always advocated for retaining the talent in the country. “There is a lot of talent in India. When they get the education here, they are the first people we want to join the workforce,” she said. “What kills me is that they are trained (in the U.S.) and then they get sent back. I want them to stay,” she added.
(The writer is in the United States at the invitation of the U.S Government)
