US State Department made the remarks noting that many of the reforms Modi government proposed have struggled to pass through Parliament. Underlining that India's 7.5% growth rate may be 'overstated', the US has said the Narendra Modi government has been 'slow' to match its rhetoric in economic reforms even as it appreciated measures taken by it in areas like bureaucracy and easing FDI restrictions. Highly appreciative of the series of economic reforms, in particular streamlining bureaucratic decision making and raising FDI limits in certain sectors, US State Department in a report said yesterday, the Modi government has been slow to propose other economic reforms that would match its rhetoric. There are few quick fixes to the structural impediments, poor regulatory environment, tax and policy uncertainty, infrastructure bottlenecks, localization requirements, restrictions in many services sectors, and massive shortages of electricity that hinder India's economic growth potential, it said. "Ostensibly, India is one of the fastest growing countries in the world, but this depressed investor sentiment suggests the approximately 7.5% growth rate may be overstated, said the report produced by the Bureau of Economic and Business Affairs of the State Department.

Source: dna July 06, 2016 03:45 UTC