'US stands with India as it undertakes difficult reforms'

Washington: The US will stand with India as a partner as it undertakes "difficult but necessary" reforms, a top White House official said on Tuesday.

"We took note of these recent steps. As the President said, we continue to believe in the promise of India and we'll be there as a partner as India makes difficult but necessary reforms," Caitlin M Hayden, deputy spokesperson, National Security Council at the White House, told PTI.

Hayden's reaction came in the wake of India's announcement of ushering in foreign direct investment (FDI) in the multi-brand retail, aviation, broadcasting and power sectors.

In an interview to PTI recently US President Barack Obama, had emphasised on the need to launch the next phase of economic reforms.

"It's not the place of the United States to tell any other nation, including India, how to chart its economic future. That's for Indians to decide," he had then said.

"I'd simply note 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," he had said.

"And as India makes the difficult reforms that are necessary, it will continue to have a partner in the United States," Obama had then said in response to a question on the perception of slowing down of the Indian economy.

Last week, a day after the Indian Government announced policy reforms, the US Indian Business Council (USIBC) termed it as a "bold action" by Prime Minister Manmohan Singh.

"The reforms approved by the Cabinet today are a welcome signal to investors everywhere," Ajay Banga, chairman of US India Business Council (USIBC) and president & CEO of MasterCard Worldwide, said.

USIBC applauds the government's bold actions that will help create a predictable investment and business climate, Banga said.

"These big bang reforms send a crystal clear signal that India is open for business," Ron Somers, USIBC president, said.

"Opening the multi-brand retail sector to foreign direct investment will drive the modernisation of India's expansive agri-retail marketplace," he said, adding that India's supply chain infrastructure will see improved efficiencies and expertise, consumers will benefit from increased quality and choice, and inflation and rising food costs will be tamed.