Prime Minister Narendra Modi’s visit to the US on September 26 will be a historic occasion. President Barack Obama had congratulated him on his victory in the Indian Parliamentary elections. It dispelled the mistrust occasioned by US refusal for a long time to grant him a visa. Modi’s visit will be different from that of his predecessors. They went with a begging bowl asking for aid. He on the other hand intends to woo US business investment in India. He is already doing famously. Japan has offered $ 30 million, China $ 20 million. Modi has sent out signals to the US that India means business. The time has come to reverse the trend of worsening India-US relations. A bilateral equation is more important that what official Delhi and Washington decide. Modi will not merely speak at the UN General Assembly in New York. He will do his best to build a bridge with the US business elite. He will have a breakfast meeting with 10 CEOs and one-to-one chats with corporate chieftains of the US. India needs investment from the US private sector. His programme emphasizes this thrust of his policies. But undeniably investment will come only if the investment climate in India is conducive. The Indian Prime Minister will have to go all out to remove misgivings about that. Suspicions over US trade policy will also have to be allayed. India’s turnaround at the WTO meeting should be no barrier.
Modi made it clear that he would be judged not by his speeches but by his actions. Money will not come in unless he can ensure a favourable business environment. The snag is that actual investments in India are low compared to investment promises. FDI in India is below 2% of GDP. So whatever promises are made in New York and Washington, Modi will have his task cut out for him on his return to India. He has to inspire trust in foreign investors, especially in the US.
