U.S. supports Modi’s economic vision, says envoy

U.S. Ambassador to India, Kathleen Stephens, during an interview in Chennai on Tuesday. -- Photo: K.V. Srinivasan

Last month’s summit in Washington between President Barack Obama and Prime Minister Narendra Modi was successful in reaffirming the importance of the India-U.S relationship and the need to “re-energise” it, especially in the light of the new Indian leadership’s economic vision, U.S Ambassador Kathleen Stephens told The Hindu .

The visit yielded little in terms of tangible outcomes, especially in terms of the Indian wish-list, which included relaxation on the H1B work visa restrictions that have affected Indian IT companies and professionals. American business, with its continuing concerns about Indian taxation laws and its intellectual property rights regime, also refrained from making any concrete commitments.

But the U.S envoy said that the more important aspect of the visit was the recommitment to the partnership at the highest political level.

“The reason I believe it was a success was that our two leaders were able to establish a good communication, a good chemistry, which will be essential in going forward with the work that we want to do together in the many, many specific areas that we have agreed,” Ms. Stephens said in an interview here.

Importantly, Ms. Stephens said, it was an opportunity for the U.S government and American private businesses to understand first hand his economic vision for India. The U.S. supports his plans for “moving India forward in terms of its economy and development.” She was confident that both sides would “find a way out” of the concerns that have bogged down trade relations on both sides.

“We are certainly encouraging American business to look at the opportunities and to engage with their Indian partners,” Ms. Stephens said. “We do welcome the signs and steps that the Modi government has taken in its early months, including increasing the caps on foreign investments in certain sectors; and we think there will be more. But that’s for business to judge. And what I hear from business is that they would like to see further steps that would make and help India an easier place to do business.”

But the U.S expects the momentum for change to come from businesses themselves, with the government only playing the role of facilitator, she said.

The full text of the interview can be >read here .