India should open up economy more: US envoy

Kolkata, May 21: India should open up its economy more for eliminating poverty and achieve a higher rate of growth and allow foreign capital for building infrastructure, US ambassador Nancy Powell said.

"In the last two decades, growth in India was made possible by openness and foreign investment. More economic openness and foreign capital is required for higher growth and defeating poverty," Powell said at an interaction with business leaders here today.

Powell said the country should stay true to its commitment with economic reforms, mainly in the foreign investment rules for India to return to ten per cent growth and lift another generation out of poverty. She said that the country needed huge funds for developing the infrastructure sector for which capital was needed on long-term basis as the banking sector of India was not capable of doing the entire funding needs.

Tariff and non-tariff barriers in India were too high which was preventing the country from gaining access from the latest and best technology and the most advanced equipment to meet its needs, she said.

India needed more foreign investment in the insurance sector, she added.

PTI