New Delhi/Washington: US companies have invested more than USD 40 billion in India through the Foreign Direct Investment (FDI) route. The US investment coming, even during the Coronavirus crisis, becomes significant. This underlines that the confidence of the US companies in the Indian marketplace is increasing. At the same time, Larry Kudlow, Director of the United States National Economic Council and economic advisor to President Donald Trump, claimed that India is emerging as a big competitor for China because of the investment made by the US companies.
As per the claim made by the trade advisory group ‘US-India Strategic Partnership Forum’ (USISPF), the US companies are expressing their confidence in the Indian market and leadership. This is the reason such big-ticket investments are coming into India from the United States, even during the times of Coronavirus crisis. USISPF claimed that US companies have made an investment of more than USD 40 billion into India in this year so far.
USISPF President Mukesh Aghi pointed out that the US companies made an investment of more than USD 20 billion in the last few weeks. These investments have come from companies like Google, Facebook and Walmart. India has become an attractive investment destination not only for the US companies but also for other countries. Aghi said that there has been an increase in the investments coming even from the Gulf.
Aghi also claimed that this makes it clear that India is an attractive market for investors. The Indian government is in the process of simplifying investment regulations. Policies are being framed to increase indigenous production. He said that the effect of these policies is becoming visible now. The investment flowing into India becomes significant against the background of US President Donald Trump’s warning to US companies to exit from China.
On Thursday, Larry Kudlow, economic advisor to President Donald Trump, also claimed that India is becoming an attractive investment destination for US companies. Citing the investments made by US companies like Google, Facebook and Amazon in India, Kudlow said that the US companies are losing confidence in China and India is emerging as a strong competitor for China. Kudlow said that the corporate tax cut announced by India would make it an attractive investment destination.
Meanwhile, in the week ending on the 10th of July, the Indian foreign exchange reserves crossed USD 516 billion. There was an addition of USD 3.1 billion in one week. At the end of the week ending, on the 3rd of July, the Indian foreign exchange reserves stood at 513.54 billion. There was an addition of USD 2.372 billion in the form of foreign currency assets. The value of the gold component also has increased by USD 7.120 billion. The value of the gold deposits with the Indian Reserve Bank has reached USD 34.729 billion.