Follow-up Action on India-US Treaties in Full Swing

On the Right Path

The follow-up action on a spate of agreements signed between India and the United States at the initiative of Prime Minister Manmohan Singh and President George Bush is in full-swing on all fronts. Relations between the two countries have touched a new high in the last two months during which period, the complex issue involving the treaty on civilian nuclear energy has been put to test. In July it was President Bush who saw to it that the Treaty sailed through in the US House of Representatives. Then, it was the turn of Prime Minister Singh to defend the Treaty in Indian Parliament against a vociferous opposition party members who accused the government of bowing to pressure from the US. James Connaughton, a senior advisor to President Bush on Energy Security, talking to Mumbai businessmen recently, referred to the nuclear energy issue and remarked, “Everything is moving on the right path.” Connaughton and his delegation's visit to India was part of the follow-up action on issues that both countries are pursuing on the energy and environmental fronts.

The enthusiasm, however, is overwhelmingly evident in business circles on both sides. In the biggest-ever India-United States investment meet held recently in the city of Los Angeles in California, USA, as many as 75 business leaders and senior government officials from India met their American counterparts to enter into commercial deals and industrial collaborations. The conference, organized by USAsia Business Forum, was supported by the US Department of Commerce and the Los Angeles Chamber of Commerce. The beautiful City of Los Angeles was a partner to the Conference and Expo. From the Indian side, the event was supported by the Federation of Indian Chambers of Commerce and Industry (FICCI). It was no wonder then, the Mayor of Los Angeles and the Governor of California joined India's Minister of State for Food Processing Subodh Kant Sahai in releasing the first ever study on Indian investments in the United States, conducted jointly by FICCI and Ernst & Young. It may be very appropriate to recall another study which looked at acquisitions by Indian companies overseas. Of the 306 companies worth $10 billion acquired by Indian companies in the six-year period 2000-06 as many as 90 were American companies, a majority of them involved in Information Technology business. Today the investment flow is a two-way affair.
The West Coast in the US being the hub of innovation and India growing rapidly in this sector, the Los Angeles event is expected to provide a win-win opportunity for both US and Indian firms in the future. ” West Coast is the leader in cutting edge technologies in IT, aviation, and biotechnology, healthcare where India is poised for growth. This event will provide an excellent opportunity for synergising this relationship,” FICCI President Saroj Poddar, who led the Indian delegation to the conference-cum-expo, said.
Today, India is dealing with the US as a strategic partner of equal stature. That is the reason why Minister Sahai, while addressing the conference, called upon the participants to look at “the new India” and explore possibilities of co-operation in thrust sectors of infrastructure, aviation and other knowledge driven areas. “A combination of resources and brainpower
will take Indo-US commercial relations to the next level,” he said.



Of course, for a country like the US, it is advantageous doing business with India, to which Poddar pointed out in his address to the conference. He said, “with an across-the-board low cost base, a favourable demographic profile, a rule-based system and a vibrant democracy, India has emerged as an attractive location for companies from different parts of the world.”
Besides, India's expertise stretches to a vast number of industrial, manufacturing and research activities. Naturally, the canvas of talks during the talks was vast. During the interactive sessions at the conference, FICCI and the Los Angeles Chamber of Commerce examined cooperation and collaboration the areas as diverse as agriculture and food processing, Information Technology, textiles and garments, biotechnology, tourism and hospitality, science and technology, education, entertainment, handlooms and handicrafts, healthcare, consultancy, and infrastructure. That was quiet an impressive list.
Poddar couldn't have held his excitement. He said in New Delhi ahead of the delegation's visit to Los Angeles. “We foresee tremendous opportunities for business linkages both in the traditional manufacturing sectors and the knowledge driven sectors.”
Excitement has been equally contagious. A high-powered business delegation from the United States, led by Under Secretary for International Trade Franklin L. Lavin will be visiting India, towards November-end and early- December 2006 to explore opportunities for collaboration. An invitation to potential delegates, sent out by the US Department of Commerce's International Trade Administration described India as the world's fastest growing free-market democracy and asked them to hurry up and join the mission. The Business Development Mission to India is being coordinated by the US Commercial Service in the United States and India. This Mission is again a follow-up of the Commercial Dialogue initiated by President Bush and Prime Minister Singh.
“US trade with India has nearly doubled in the last three years and the opportunity for US businessmen to export to India has never been better,” said Lavin after announcing in Washington that he would be leading the Mission to this country. That India presents lucrative opportunities for all types of businesses is indicative from the two-way trade figures. In 2005, US merchandise exports to India were worth $8 billion, doubled since 2002.
“As our economic relationship grows, we must work closely together to ensure that American companies have the opportunity to compete and identify new customers in the fast growing Indian market,” Lavin said. India is one of the few countries in the world with which the US has a sub-cabinet dialogue of this nature. The US currently has sub-cabinet level commercial dialogues with Brazil, China, the European Union and NAFTA partners Canada and Mexico.
The visiting US Business Development Mission to India will start their exploration of India’s booming market by participating in the Business Summit in Mumbai, India’s commercial capital, during its stay in the city on November 29-30. The other business destinations that the US delegation will visit include New Delhi, Bangalore, Kolkata, Chennai and Hyderabad. The visits to these cities are considered business matchmaking missions.
During their India stay, Mission participants will have access to India's high-level business, industry, and government representatives and opportunities to gain insights into the country's trade and investment climate during strategic breakout sessions. During the delegation’s India visit, American companies will have the chance to make or increase sales in the booming Indian market.



The US Commercial Service has made a commitment to arrange business meetings, briefings, networking receptions, and one-on-one business appointments with prospective agents, distributors, partners, and end-users for each US Company.
The Mission is being monitored closely by the US Department of Commerce's International Trade Administration. A word about this department. The Internal Trade Administration is responsible for developing US trade policy, identifying and resolving market access issues, administering US laws, enhancing the global competitiveness of US manufacturing and services sectors, and coordinating efforts on behalf of US businessmen.
The follow-up action was also initiated by India-US Financial and Economic Forum which met in Washington recently as part of the broader US-India Economic Dialogue. The respective delegations to the Forum discussed a number of key issues including developments in the global economy, policy responses to high oil prices, US and Indian leadership in the WTO Doha Development Round negotiations, strengthening India’s physical and financial infrastructure, and collective efforts to combat money laundering and the financing of terrorism.
Both sides agreed that successful conclusion of the WTO Doha Development Round negotiations remained essential to promote global trade and growth.