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Talking to members of the India-US CEO Forum, PM Modi pitched for "heavy investment in infrastructure and agriculture in India to boost purchasing power and grow the economy," also saying, "The scale of our dreams are huge and so are the opportunities that India offers.
"It helps to know how investors feel about how the government should work," PM Modi said, thanking the business leaders for flagging issues. Consistency in policy would solve many problems, he said.
"The solution to all your problems is pro-people, good governance. The government is taking initiative to ensure ease of doing business, "the Prime Minister told the 50 odd business leaders.
President Obama told the forum that there was a "natural convergence" between the two countries and added, "I am excited that not only is the US investing in India but a lot of Indians are investing in the US."
After interacting with the CEOs, the two leaders addressed a larger business gathering. Business is a key agenda on Mr Obama's three-day trip to India, with the US, the sixth largest investor in India, targeting a five-fold increase to 500 billion dollars in two-way trade by 2025.
"Modi and I are interested in smart regulation," said President Obama, saying he wanted to see more trade between the two countries.
PM Modi's pet initiative "Make in India" was a key thrust of talks today, with discussions on creating the right atmosphere for massive bilateral business cooperation, particularly in the light of the US being a major potential source of manufacturing investments.
30 business leaders from the US - including Indira Nooyi of Pepsico, Harold McGraw, Chairman McGraw Hill Financial and Ajay Banga, CEO Mastercard - have flown in to Delhi to attend the meetings.
17 Indian CEOs are attending the US-Indo CEO forum, to be co-chaired by Cyrus Mistry of Tata Sons and David M Cote from Honeywell. Others on the forum from the Indian side include Mukesh Ambani of Reliance Industries Limited, his younger brother Anil Ambani, Chairman of Reliance Group, Bharti chief Sunil Mittal, ICICI Bank MD & CEO Chanda Kochhar, Infosys CEO Vishal Sikka, Adani Group head Gautam Adani, Shashi Ruia, Chairman of Essar Group, Mahindra & Mahindra Chairman Anand Mahindra, Hari Bhartia, co-chairman and director of Jubilant Life Sciences, Biocon Chairman and MD Kiran Mazumdar-Shaw and Sudhir Mehta of Torrent Pharma.
Bilateral trade between the two countries stood at $61.64 billion in 2013-14. India has received $13.28 billion in FDI from the US between April 2000 and November 2014.