iNDICA NEWS BUREAU-
In the last few months, India has been in the spotlight for many top global companies for big investments, including giants like Google and Facebook.
This could be due to a growing mistrust against China, says a top economic advisor to President Donald Trump said on Thursday.
Larry Kudlow, White House Economic Advisor, talking to reporters here, said that with the slashing of corporate taxes, India could be a very attractive investment place.
“I think it (investment of US companies in India) is interesting. Just a moment on India. I have been to a couple of bilateral meetings with the (Indian) leaders. What (does) that tell you. People are losing trust in China and India becomes a big competitor,” Kudlow said.
The relationship between the US and China has been on the downward slope after the pandemic began, with Trump openly calling out China as the key culprit. China is also not happy about how Trump has been influencing other nations like the UK to drop their dealing with Huawei’s 5G technology.
The US has also lambasted China for suppressing the freedom of Hong Kong, a semi-autonomous Chinese territory that has a special trading relationship with America, by implementing the national security law which allows Beijing to tighten its grip over the former British colony.
In contrast, India has been making all the right moves with all the global leaders and companies bringing in loads of investment like never before.
“If I’m not mistaken, India has slashed its corporate tax rate. I know that was my recommendation to Prime Minister Narendra Modi when I met him 18 months ago. So, it (India) may be a very attractive investment place and he is a great ally of the US,” Kudlow said.
In a major concession to industry, the Centre last year slashed the corporate income tax rate for new companies in the manufacturing sector to 15 percent. For existing companies, the rate has been brought down to 22 percent.
However, Kudlow cautioned against India continues to be a “very protectionist” country.
Whatever said and done, India has clearly realized the opportunity of the current global situation and has poised itself as a viable place for investments that global companies cannot ignore. PM Modi has turned India’s population, the bane of the country into a boon.