In a report released on Wednesday, United States of America has said that the Narendra Modi Government’s plans are slow in execution when compared to the claims they seem to make, and that is the reason behind investors slightly retracting.
The government failed to gather enough political support for land acquisitions, while the Good and Services bill is still being negotiated. The report blamed India of having poor regulatory environment, tax and policy uncertainty, infrastructure bottlenecks, localization requirements; restriction is service sectors, shortages in electricity among others.
The report titled – Investment Climate Statements For 2016 – also doubted the 7.5% GDP growth India projected. The report produced by Bureau of Economic and Business Affairs of the State Department says – Ostensibly, India is one of the fastest growing economies in the world, but this depressed investor sentiment suggests an approximate 7.5 percent growth that may be overstated, even while appreciating the government’s achievements in bureaucracy and foreign direct investments.