"We are here as friends of India. We want to see you succeed. We have strong ties, and your rising prosperity is good for us too," he told a small group of journalists at the American Consulate in Mumbai on Tuesday afternoon. "We see your growth as helping us, with more markets."
Flanked by an aide and the US Consul General in Mumbai Michael S Owen, Snow said his meetings in Mumbai with CEOs of American firms doing business in India as well as Indian firms had helped give "us an idea of the economic and opportunities for growth and investment in India."
During these interactions, "we were stuck by the self confidence and high aspirations of Indian business people," he said.
"India's really on the right track, from basic reforms in 1991 to becoming a larger and larger part of the global economy." But while the 7 to 8 per cent growth was commendable, 'unemployment is too high,' he said. "We want to energise the reforms process."
Making a strong pitch for further opening up the Indian financial sector, he said a "growing financial sector, mobilising and moving capital, becomes a spark plug for higher growth." And faster economic growth would help India to deal with problems like poverty and unemployment.
India's plans to build up its infrastructure (roads, airports, ports, power, housing) were part of the growth process, he said.
"But infrastructure's gotta get financed. Opening up insurance, health, and the banking sectors would help fund such long term projects," he said. Officials in the Indian banking sector had told him that they want "non-Indian banks to widen their scope of operations in the country," he added.
India also stands to gain by opening up the agricultural sector, since it would inject modern technology and methods which would benefit farmers and the people. "India stands to gain
He said several senior Indian officials had told him that India was encouraging foreign direct investment, and among other options, "retailing is one area being looked at."
He also urged an improvement in the "way the judicial system works, to cut down the prolonged time it takes to settle disputes."
While "India has gained so much in the past 15 years due to the reforms, it was time to look at the feasibility of putting in place a commercial arbitration process, so that uncertainties over the timeframe to settle legal disputes were shortened. Win or lose, we should know within a given timeframe," he said.
He was pleased to hear Indian business leaders tell him that 'we are already thinking of that.'
Asked about disagreements between Washington and Delhi on the WTO (World Trade Organisation) negotiations, he said 'friends don't always agree, but the differences are small.'
Asked to compare the Indian and Chinese markets, he sidestepped the question, but said both nations were growing at a very fast rate. While the US had issues with China over Intellectual Property Rights and the devaluation of the yuan, "the issues here are somewhat different," he said. But "I am pleased to see India and China taking up more responsibility for the global economy."
"We are encouraged by what we see. Our relations have never been so strong, and President George Bush's visit early next year to India will further underscore those relations," he said.
Apart from CEOs of various financial sectors and members of the India-US Business Council, Snow, who arrived in Mumbai on Sunday, also met Reserve Bank governor Y V Reddy. He visited the Bombay Stock Exchange, the Commodities Exchange and a a slum rehabilitation project which had brought about a "remarkable improvement in the lives of poor people.
He will leave for Delhi on Wednesday to meet Prime Minister Manmohan Singh, Finance Minister Palaniappan Chidambaram and other senior Indian officials.
