PHD chamber discusses what India can learn from US investment policies

LUCKNOW: The PHD Chamber of Commerce and Industry, UP chapter, on Friday, discussed what India could learn from the US regarding investment policies.

The event, ‘India and US: Learning from one another’s experience vis-à-vis competitiveness and ease of doing business’, was organised as a build up to the state government’s two-day mega investors’ summit starting February 21.

Daniel Mitchell, economist, centre for freedom and prosperity, the US Embassy, was the keynote speaker, while Mukesh Singh, co-chairman, PHDCCI UP chapter presided over the session. Mitchell explained the US policies for growth, their focus on modest fiscal burden (low taxes and spending), modest regulatory burden (based on cost benefit analysis), open trade (no protectionism), sound money (no inflation) and rule of law and property rights.

He also explained what made for a proper approach to federalism, including a free and open internal market where citizens were free to choose where to live, work, save, invest or shop. In this regard, he also talked about good and bad competitive federalism.

Mukesh Singh discussed whether India's jump in the ease of doing business ranking -from 130 in 2017 to 100 in 2018 -would actually foster economic growth. He pointed out that improvement in ranking may not help bring investments to the country. Citing examples of Egypt, Hungary, Columbia and Turkey, Singh said that improvement in ranking had not been much useful to these countries too as far as attracting investment was concerned.

However, Singh applauded the Yogi government for taking steps to build an industryfriendly atmosphere in the state. “Indian business leaders are flexible and good to deal with as compared to those from other countries,” he said.

The state government is expecting investments worth several lakh crores during the investors’ summit.