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Change Your Life! |
U.S. Ambassador predicts rush of investors when India opens up |
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News |
June 24, 2000
NEW DELHI, (AP) - U.S. Ambassador Richard Celeste said Friday that Americans would invest more than dlrs 1 billion in the Indian insurance business shortly after it is opened to free competition this year.
U.S. investment in India is 13 years behind China, the U.S. ambassador said, because New Delhi did not begin its program to open markets, reduce protectionism, lower subsidies and privatize state companies until 1991. China started in 1978.
Celeste told the Foreign Correspondents' Club that during Vajpayee's visit to Washington later this year "we hope he will amplify on the message ... that India is really determined to move forward on the second stage of reforms and to invite American investment into India."
He predicted that once the Indian insurance sector opens up, U.S. investment in that business will soon be "well in excess of dlrs 1 billion." He said American investors will also be interested in India once the telecommunications and Internet sector is opened up so that "providers can choose what gateways they want to use to get into the world market."
Although it is easier for investors to get into business in China, Celeste said that "ultimately it is easier to run a profitable business in India."
When trade between the two countries is more open, he said, "You'll find that Indian businessmen will become increasingly aggressive in tackling us in the US market. It is dynamic, going both ways."
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