NEW DELHI: The Goods and Service Tax, which the Indian government is trying to implement from July 1, will encourage American companies to invest in India more but it won’t be enough, Harvard University Professor Martin Feldstein said today.
At the Economic Times Global Business Summit, Prof Feldstein said that India needs to do more if it want to get more investment.
India needs to reform employement and land ownership laws, he added.
The rising labour costs in China, Prof Feldstein said, will encourage more American companies to look to India but he warned that policy changes needed.
Just yesterday, the Modi government tabled four crucial bills in the Parliament.