WASHINGTON – U.S. Senator Mark R. Warner (D-VA), co-chair of the bipartisan Senate India Caucus, today praised the recently unveiled Indian budget, which includes several provisions that the Senator called for the U.S. and Indian governments to accomplish in his 100-day plan, such as raising limits on foreign investment.

“I am extremely pleased by Prime Minister Modi’s willingness to tackle some of the regulations that have stifled foreign investment in the Indian economy,” said Senator Warner. “I have been working with the Indian government for years to encourage them to lift the caps on foreign investment, as well as to increase opportunities for American firms to bid on Indian infrastructure projects.  I am glad that the new Indian Administration has incorporated many of my recommendations into its budget, demonstrating Prime Minister Modi’s commitment to grow the U.S.-India relationship.”

In May, Senator Warner laid out a 100-day plan prior to the beginning of Prime Minister Modi’s new Administration that included recommendations for both the U.S. and Indian governments. Recommendations that were reflected in the Indian budget include:

• Increasing Foreign Direct Investment in the defense sector from 26% to 49%.
• Increasing Foreign Direct Investment in the insurance sector from 26% to 49%.
• Launching new infrastructure projects, which provide opportunities for U.S. companies to participate.

These actions add to several other “First 100 Day Plan” recommendations that have been adopted in the last few weeks:

• Secretary of Defense Chuck Hagel has selected Under Secretary of Defense for Acquisition, Technology, and Logistics, Frank Kendall to lead the U.S. efforts for the Defense Trade and Technology Initiative.
• The State Department announced the U.S. delegation will travel to Delhi to participate in a US.-India Strategic Dialogue.

Other provisions in India’s budget that Senator Warner has advocated for include:

• A review of Indian tax regimes, which had levied unexpected taxes on foreign firms.
• A commitment to invest in technology, warehousing, and bureaucratic restructuring to improve farm-to-market in India.

“With the election of Prime Minister Modi, we have an opportunity to refresh the U.S.-India relationship and work cooperatively to make progress that will benefit both of our countries. This budget is a very productive step in the process,” Senator Warner said.  

Senator Warner's First 100 Day U.S.-India plan is available here.