India's economy has been one of the stars of global economics in recent years, with a growth rate of 9.2 percent in 2007 and 9.6 percent in 2006. Growth had been supported by markets reforms, huge inflows of foreign direct investment (FDI), rising foreign exchange reserves, both an IT and real estate boom, and a flourishing capital market. India's infrastructure is being upgraded during the 11th five year plan (2007-12)

This has reduced poverty by 10 percent, but with 60 percent of India's 1.1 billion population living off agriculture, with droughts and floods increasing with the changing climatic regime, poverty alleviation is still a major challenge. The Indian Government signed a wide-ranging nuclear treaty with the US, in 2008 in part to gain access to nuclear power plant technology that can ensure the country energy security and reduce its dependence on oil imports.

Against the above background, Amrita Chatterjee interviews Ms. Beth A. Payne, Consul General, United States Consulate in Kolkata, on India's expanding economic relations with the US and the potential for US investments in this country in general and Bengal in particular.

Ms. Beth A. Payne began her assignment as U.S Consul General in Kolkata, India, recently. A career Foreign Service Officer, she joined the U.S State Department in 1993. She had earlier worked in the US embassies in Senegal, Rwanda, Israel and Kuwait. She also served in the Office of Children Issues in the State Department in Washington D.C. Ms. Payne received a M.S in National Security Studies from the National Ware College in 2008; J.D from American University's Washington College of Law in 1988; and a B.S. in special Education from Pennsylvania State University in 1985. She was also named the state Department's Consular Officer of the year in 2004 in recognition of her work in Iraq.

US Secretary of State Hillary Clinton talked about the beginning of a new era in Indo-US relations during her recent visit to India. What opportunities do you visualize?

The development is so exciting! Hillary Clinton's visit emphasizes the Indo-US relations that have already started in areas of environment, health, defense, security, agriculture, technology and several others. Strategic relations have been built in partnership whether it's the issue of climate change, or need for nuclear energy. Crucially, the recent developments, including her visit, have broadened our relationship with India. We witness that friendship has grown much deeper in the last decade. Now, new avenues will open up towards development and at the same time in partnership. India and the US will combat the challenges of security, poverty alleviation, and climate change. The nuke deal has already solidified; there will be major breakthroughs in the forthcoming days.

Though India is economically stable, some political uncertainties still exist. Why do you think American investments should come to India?

Well, India now has stable Indian government; it's a stable and a very good government to work with. Political uncertainties are much less now. Investors can evaluate the immense potential that exists in this country. India has a committed work force, largest in the world market; it has an expanding market place with growing middle class. Government of India is greatly encouraging Private-Public-Partnerships and there are bigger opportunities for investors to come and explore.

In regard to Bengal, why do you think investors should stay on?

Well, every state has its own potential to attract investors, Bengal has a very educated work force. We just had a team from Export Import Bank, which finances large investments. It came to West Bengal. Bengal has tremendous potential in the Information Technology sector. Many US companies had an excellent experience here. Pepsi is expanding its potato processing plant for its products in the state. Lastly, it is very much up to the people of West Bengal, how they would like to shape the development opportunities in their State.

What in your opinion is the potential of rural Bengal as a global market?

The rural sector in West Bengal is densely populated and has good potential. US largely believes in inclusive economic growth, where large sections of people can be part of the development process. Whatsoever, the existing challenges are in rural or urban areas, private investors can find creative solutions to such challenges, its just the law has to permit. FDI is restricted in insurance, thus many insurance companies cannot design any insurance coverage for the rural population. It is important to have policies and at the same time investments that are ideally, economically, and socially viable. CSR (Corporate Social Responsibility), is a big component now, everyone understands, that quick money will not last, the welfare of all is a factor for long term investments.

Do you think recession will end by 2011?

I cannot predict anything. We certainly can hope for the best to happen for all by 2011.

What is your take on the sustainability factor in the economic development of India?

As said, our perspective is of inclusive economic growth, which means the development process will not only benefit the entire population but will also consider the environmental issues. It should not be the way, like only a handful gets a bigger piece of pie. We should have win-win economic gain for everyone. If a large section stays behind and continues to survive in poverty, then growth is not a sustainable growth. We are happy to offer our lessons learnt. Education, health, needs to be taken care of. Climate change is threat before us, and the US is ready to extend all its support to combat such challenges ahead.