Barriers in trade have fallen due to Modi govt’s reforms: US corporate body

PTI Washington | Updated on June 25, 2019 Published on June 25, 2019

Barriers in trade have fallen and many processes have been simplified as a result of the series of key reforms instituted by the Indian government, a top corporate body from Silicon Valley has said.

The Bay Area Council, in its latest report on India, said that sustained economic growth and national strategies that push digitisation across a range of sectors and services are creating unique synergies with the Bay Area that open the door to new opportunities, as Bay Area companies expand their global footprint and diversify their market presence in Asia.


“India remains a complex place to do business, but with reforms instituted by the Modi government, barriers have fallen and many processes have been simplified. The re-election of Prime Minister Narendra Modi to a second term in May 2019 assures that these reforms will continue,” the Bay Area Council has said.

The report ‘The Bay Area-Silicon Valley and India: Convergence and Alignment in the Innovation Age’, said that as with any relationship between major countries, there are complex issues. Imposition of 25 per cent and 10 per cent steel and aluminium tariffs by the US in 2018 led India to impose retaliatory tariffs in 2019. The US withdrawal of Generalised System of Preferences (GSP) benefits has also exacerbated the trade relationship, it said.


“On the Indian side, government proposals to require data generated in India to be exclusively stored in India, and proposed data privacy regulations that are among the most stringent in the world, have drawn strong opposition from both Indian and US IT and financial services companies,” the report said.

Noting that India is a large untapped market for financial services, the report said that the Modi government sees mobility, fintech and a cashless society as keys to financial empowerment and business growth, providing access for ordinary Indians to credit, insurance, digital payments, and e-commerce.

“Fintech acceptance and adoption have grown rapidly, with the traditionally cash-driven Indian economy responding well to the fintech opportunity primarily triggered by the related surges in e-commerce and smartphone penetration,” it said. The shift to digital payments promises to revolutionise India’s economy and in the process transform the financial sector.

Published on June 25, 2019

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.