India's Deteriorating Investment Climate Worries Obama

Obama noted that "there appears to be a growing consensus in India that the time may be right for another wave of economic reforms to make India more competitive in the global economy." Obama then went on to add, “and as India makes the difficult reforms that are necessary, it will continue to have a partner in the United States." "It is important, though, to put this in the context of India's incredible growth and development in recent decades," he said.

The President pointed out that India had lifted tens of millions of people out of poverty to create one of the world's largest middle classes. "Indian innovation is an engine of the global economy. And even with the recent challenges, the Indian economy continues to grow at an impressive rate. The Indian people have displayed a remarkable capacity to meet India's challenges," he said.

Describing Prime Minister Manmohan Singh as "my friend and partner with whom I have worked closely", Obama said he valued the insights of the Indian leader at various international fora including the recent G20 meeting in Mexico. He said at the G20 they agreed that one of the best things they could do to get the global economy growing faster was to renew the focus on growth and job creation in their own countries.

"That's my priority in the U.S. Of course, one of the most effective ways we can create jobs is to continue expanding trade and investment, including between the U.S. and India."  The President said they need to keep strengthening the pillars of the long-term economic vitality and competitiveness, including the education of the people of the two countries, science and technology, and the modern infrastructure that allows them to move goods and services faster.