Washington: US tech giants like Google and Facebook saying large investments in India reveals that individuals are shedding belief in China and India is rising as an enormous competitor, a prime financial advisor to President Donald Trump mentioned on Thursday.
Larry Kudlow, White House Economic Advisor, speaking to reporters, mentioned that with the slashing of company taxes, India might be a really engaging funding 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 mentioned.
The prime financial advisor to Trump was responding to a query on a collection of investments being introduced by main American firms like Google, Facebook, Amazon and Walmart working into billions of {dollars} in varied Indian firms.
Google chief govt Sundar Pichai on Monday introduced plans to speculate Rs 75,000 crore in India over the subsequent 5 to seven years to assist speed up the adoption of digital applied sciences within the nation.
The funding follows commitments made by different US tech majors Facebook and Amazon, earlier this yr.
The US and China are at loggerheads over a number of points, together with the coronavirus and China’s implementation of a controversial safety legislation for Hong Kong.
The Trump administration blames China for not warning the world of the coronavirus pandemic earlier and hiding the extent of its outbreak. Beijing has rejected the allegations.
The US has additionally lambasted China for suppressing the liberty of Hong Kong, a semi-autonomous Chinese territory that has a particular buying and selling relationship with America, by implementing the nationwide safety legislation which permits Beijing to tighten its grip over the previous British colony.
“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 mentioned.
In a serious concession to business, the Centre final yr slashed the company earnings tax price for brand spanking new firms within the manufacturing sector to 15 per cent. For present firms, the speed has been introduced right down to 22 per cent.
However, Kudlow cautioned towards India persevering with to be a “very protectionist” nation. “We are not opposed to international commerce. Those are great American companies. Good luck with India. India is a great country. President Trump is very friendly (with India). He was with Prime Minister Modi. It’s also very unfortunately, very protectionist country. So I’ll just wish them (US companies) luck. But a lot of population,” Kudlow mentioned in response to a query.
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