US business honchos hopeful Modi victory will improve trade relations with India

Narendra Modi's election as India's new prime minister has invoked business groups of the USA to improve upon the strained trade relations with India.

Business leaders and economists in the US now believe that the newly formed government can condense the pressure between the two countries over India's protectionist policies.

India's ex-prime minister Manmohan Singh's government had contravened charges against expensive medicines and did not allow the entry of Foreign Direct Investment into the country, preferring home manufacturers and curbing the entry of foreign banks and super markets for further investment.

According to Politico, business groups for his efforts hail Modi to reduce barriers for the entry of foreign investment as the chief minister of Gujarat. But his strong Hindu extremist policies have drawn large criticism especially because he had not done more than required to constrain the violence that resulted in the death of a majority of Muslims in 2002.

Linda Demsey and Chris Moore, representatives of National Association of Manufacturers have revealed that with the formation of the new government an opportunity for fresh start is possible but has also said that it is indeed an assumption until Modi's appoints the head of India's Ministry of commerce.

Several other trade officials such as Rajiv Biswas, an economist has analyzed that Modi's prime ministerial position could boost the Indian economic growth by a surging 8 percent GDP annually by 2017.

Reports have revealed that drug companies from the US have expressed their displeasure against India for granting routinely compulsory licenses to the domestic manufacturers of their products and flouts away charges on cancer medicines and other drugs.