Energy, High-Tech Trade Form
Key Areas Of Indo-US Tie-Ups

U.S. Commerce Secretary Carlos M. Gutierrez has recently addressed the US India High Technology Cooperation Group in Washington, DC emphasizing that both civilian nuclear energy and clean energy as well as high-technology formed key areas of collaboration between the US and India. Excerpts.

There is a natural alliance between the world's oldest democracy and the world's largest democracy. While President Bush's historic visit last March (2006) was a visible example of that priority, the ongoing shared values, commitment to democracy and enhanced engagement on all levels signifies the great importance of our partnership.
I know Deputy Secretary Sampson addressed this group earlier in the day. Our presence reinforces the commitment the Bush Administration has to strengthening the U.S. and India relationship. I've just returned from India and it was a wonderful and eye-opening experience.
During my visit I was struck by just how far India has come in a short time -- the economic growth is incredible. It's no wonder global businesses and investment companies are clamoring to get into such a dynamic market:
• In the past year, India's economy grew by more than 9.0 percent.
• Total U.S. exports to India have doubled to $10.1 billion since 2003.
• Over the last five years, advanced technology exports alone were up 145 percent to $3.3 billion.
Few markets are more exciting, or more significant than high tech. We appreciate your leadership and commitment to working with us to streamline the process as much as possible. We have made good progress on many fronts.
During my trip, I talked with government business leaders about opening India's market further, and forging ahead with a reform agenda to attract more investment and maintain the strong pace of growth. Every country in the world is competing for capital. And capital will go to those markets that welcome investment.
It is fitting that I am addressing this audience so soon after my visit. The US-India Business Council should be congratulated for its role in fostering civilian nuclear cooperation, supporting our bilateral Commercial Dialogue, and performing a key role in this High-Technology Cooperation Group (HTCG).
When I met with Science and Technology Minister Kapil Sibal recently, he encouraged us to look at developing deeper ties between our private sectors in several key areas: space, energy, environmental technologies, disaster management and healthcare.
I challenge those of you here today to recommend practical commercial applications and solutions, so that we can, as Minister Sibal put it, "send a signal to the rest of the world."
This is very much in keeping with what Prime Minister Singh said to me that “our partnership is based on pragmatism and principle.”
Commerce Has Many Strategic Partnerships
The Commerce Department is working to enhance our commercial and strategic partnership. There are many opportunities for engagement, from oceans research to patents and trademarks.
Under Secretary Lavin recently led the U.S. government's largest business development mission ever - 250 business people went to India in search of export opportunities.
Clean energy is one area in which we can partner for commercial and environmental success. The Commerce Department will shortly lead a Clean-Energy Technologies Trade Mission to India. The nuclear agreement is another example.
This group continues to be a key forum that delivers significant results. You've made an enormous contribution to advancing high-technology trade and collaboration, while strengthening our shared non-proliferation objectives.
This is an effective forum for our governments to discuss strategic trade issues, but it is also a unique partnership that gives business executives from both nations a chance to share ideas with senior government officials.
And this collaboration has delivered real results. Today, less than one percent of U.S. exports to India require an export license. That is truly remarkable if you consider that in 1999, 24 percent of total U.S. exports to India had to be licensed.
There is More To Be Done
We must continue to identify and remove obstacles to closer economic ties. In a few months, our "Trusted Customer" program for high-tech exports to India should be up and running. This will be a significant development for two reasons.
First, the Trusted Customer program will greatly facilitate high-tech trade. For some controlled dual-use high-tech products, no export licenses will be required. Customers who qualify for this program will have access to U.S. high technology products in a faster, more efficient, and more transparent manner.
Second--and perhaps more important--the new program shows the deep level of trust and cooperation we have for each other. Trust is absolutely vital in business.
There are other reforms--opening markets in sectors where obstacles remain, further reducing tariffs and getting tougher on enforcing IPR and protecting IP and pharmaceutical test data--that will benefit India's economy and consumers, while maintaining the current growth trajectory.
Our nuclear agreement was an historic step forward for both our countries. Civil nuclear cooperation will enhance energy security, while increasing trade and technological collaboration.
India is now the world's fifth-largest energy consumer. India's demand for electricity is expected to double by 2015. International civil nuclear cooperation is critical for India to meet its growing energy needs and environmental challenges.
U.S. businesses are ready and well-qualified to participate in India 's civil nuclear program. And the economic benefits will flow both ways between the United States and India.
Now that the U.S. Congress has approved the agreement--the next step is India's. India will need to conclude a safeguards agreement with the International Atomic Energy Agency so that it can reach a bilateral agreement with the U.S.
Only after these agreements are concluded can the Nuclear Suppliers Group allow nuclear trade with India. Given how far we have come, we hope India will fulfill its responsibilities and ensure U.S. companies are able to compete in India's expanding civil nuclear market.
While in New Delhi, I also reaffirmed our commitment to the Asia Pacific Partnership on Clean Development. This effort was initiated by President Bush, Prime Minister Singh, and the leaders of Australia, China, Japan and South Korea.
In the next decade, India plans to add 100 gigawatts of new power, including bringing electricity to 18,000 remote villages. U.S. companies make world-class environmental technologies that can help India meet the needs of its rapidly growing economy, while reducing air pollution and enhancing energy security.
So, we're looking for good results to come from our upcoming trade development trip to India.
Need For Global Trade Cooperation
Our relationship has matured to the point where we can be honest and frank. In my meetings in India, I stressed the importance of India's full participation in the Doha round of global trade talks. Simply put: India's leadership is required to achieve an agreement.
India has a tremendous opportunity to play an active and positive role in pushing these talks ahead. We are willing to make difficult choices. But we have a shared responsibility to make the round a success.
We believe that getting an agreement as soon as possible is important. However, the real important objective is to get a good agreement.
In the U.S. we hope to continue on the track of opening more markets, and are working with the new Congress to renew President Bush's Trade Promotion Authority, which is currently set to expire at the end of June.
We are proud to be India's partner and friend. Together we can enhance prosperity and improve the lives of all our citizens and make the world a better place.
During his recent visit to India, U.S. Commerce Secretary Carlos M. Gutierrez addressed the Indo-American Chamber of Commerce in New Delhi, where he said the U.S. placed a tremendous priority on its relationship with India.
Speaking on the topic, 'The US and India: Opportunities and Challenges for Growing Together', Gutierrez said the President's visit last March was a visible example of that priority, “the ongoing shared values, commitment to democracy and enhanced engagement on all levels signifies the great importance of our partnership.”
Under Secretary for International Trade, Frank Lavin, who is here with me today, recently conducted the U.S. government's largest-ever business development mission to India.
We appreciate FICCI's work with us on the Mumbai Business Summit and the Commercial Dialogue events that were part of the overall mission. My visit this week serves to reinforce our commercial interest in India, but also to discuss the challenges our two nations face in growing our relationship and expanding upon our economic successes,”
This economy has made impressive strides in recent decades--growth alone in India's economy in 2005 is the equivalent of the entire Indian economy of 35 years ago.
The U.S. is India's largest trading partner, and through November that partnership was worth $29 billion in two-way trade. This evening we will announce final U.S. trade totals for 2006. I'm confident the numbers will reflect we are well on our way to reaching the goal set by President Bush and Prime Minister Singh of doubling trade by 2009.
Commercial and Strategic Partnerships
The Commerce Department is working to enhance our commercial and strategic partnerships. There are numerous opportunities for engagement, from oceans research to patents and trademarks, which will create growth, efficiency and employment for both of our economies.
One specific area of success has been the U.S.-India High Technology Cooperation Group, a key dialogue that has helped advance high-tech trade and collaboration.
The HTCG. is a unique partnership between government and industry, which has delivered significant results. Today, less than one percent of U.S. high-technology exports to India require an export license.
The upcoming HTCG. meeting is an opportunity to capitalize on the momentum of the emerging US-India Strategic Partnership. Deputy Secretary Sampson looks forward to hosting Foreign Secretary Menon and his delegation in Washington, D.C.
Our nuclear agreement is another example. US civil nuclear companies are eager to partner with Indian companies. Once all necessary steps toward civil nuclear cooperation are taken, there will be abundant opportunities for Indian and U.S. businesses together to develop the Indian nuclear power sector and partner in other markets.
Clean energy is another area in which we can partner for commercial and environmental success. In April, the Commerce Department will lead a Clean-Energy Technologies Trade Mission to India.
As you know, India is a member of the Asia Pacific Partnership on Clean Development and Climate. The APP was initiated by President Bush, Prime Minister Singh, and the leaders of Australia, China, Japan and South Korea.
In the next decade, India plans to add 100 gigawatts of new power, including bringing electricity to 18,000 remote villages.
U.S. companies produce world-class environmental technologies that can help India meet the needs of its rapidly growing economy while reducing air pollution and enhancing energy security. So we are excited about this unique trade mission.
Challenges to Continued Growth
As I mentioned, India has experienced impressive economic growth. The Indian GDP in 2005 was $785 billion. The economy has grown at a stunning 9.0 percent, and unemployment has been trending downward.
US exports to India are up 25 percent, and investment is up significantly. This has been possible because India has initiated important reforms which have encouraged U.S. businesses to keep coming.
We applaud efforts to allow more foreign investment, reduce tariffs, protect intellectual property and liberalize air travel. In fact, the flight I took into Delhi was allowed through the Open Skies Agreement, which has now been in place for two years.
This is a concrete example of a reform which has had an immediate impact on improving our ability to connect. But more needs to be done to open India's markets. There are some sectors such as retail, banking, financial services and telecommunications, where obstacles remain.
Needless bureaucratic hurdles, protectionist policies or caps on foreign ownership, hamstring businesses that wish to contribute to this burgeoning market, and bring goods, services and increased options to Indian consumers.
While progress has been made on intellectual property, India continues to be a major global source of counterfeit medicines. Enforcement is key. Without protecting patents and data India will not attract the R&D and innovation necessary for strong growth in sectors such as pharmaceuticals.
Nearly three-quarters of all U.S. software in India is pirated. India is renowned for its world-class skills in software development, exporting three times as much IT as it consumes. India could support a strong local software industry if piracy were lower.
The Indian entertainment industry will also benefit from stronger IPR enforcement. Bollywood is endlessly creative and innovative. The Indian artists and performers who invest in creative pursuits deserve to benefit from their hard work.
The challenging regulatory climate here continues to hamper commercial opportunities. While there are many success stories, there are also many stories of failed partnerships and business ventures.
In fact, earlier this month, an article in The Wall Street Journal chronicled some of these challenges. India must continue making the difficult choices that will ultimately expand and grow opportunity for its citizens.
For India to continue its phenomenal growth it must open all areas of its economy and encourage investment--both foreign and internal.
India attracts less foreign investment than other countries in the region. Similarly, India's inward FDI is significantly lower than its neighbors in Southeast Asia. There is tremendous room for growth.
Opportunities for Continued Success
But India is not alone in its challenges. In the U.S. we too are working to keep opening international markets, and ensure access to our markets and choices for our consumers.
In a growing international marketplace, it is easy for some to suggest protectionism would protect jobs. It won't. The only way to create and protect jobs is to promote private investment and trade, encourage innovation, expand job training, and compete. One way to promote innovation is to expand the minds of young scientists and engineers through enhanced educational opportunities.
In today's interconnected society it is crucial that we work together to understand each other and build a better world. Education offers one of the best avenues toward better understanding, and breakthroughs in science and technology that help to drive business around the world.
India is a crucial partner for the U.S. American universities that have been educating Indians for years. In fact, there are more Indian students in our country than from any other. America's doors continue to welcome students from India. We welcomed 80,000 Indian students last year.
The Department of Commerce is leading an initiative with the Department of State and with the support of the U.S. education community to inform students here about the breadth of educational opportunities in the U.S. through the eyes of current Indian students.
In addition to education, opening markets throughout the world also helps us compete and create jobs. Businesses in India and the U.S. have responded with tremendous enthusiasm to the new opportunities increased foreign markets provide. In the U.S., we have created an export culture throughout our country.
One final area we are working on, which will expand international markets, help alleviate poverty and boost development around the globe, is the advancement of the Doha round of trade negotiations. Simply stated: India's leadership is required to achieve an agreement.
India has a tremendous opportunity to play an active and positive role in pushing these talks forward. We are willing to make difficult choices, but we have a shared responsibility to make the round a success.
In the US we hope to continue on the track of opening more markets, and are working with the new Congress to renew President Bush's Trade Promotion Authority, which is currently set to expire at the end of June.
Time is short, and a great deal remains to be done if we in the United States are to show progress in the Doha Round sufficient for Congress to renew the Trade Promotion Authority needed to conclude the negotiations.
Because of our strong relationship and respect for each other, we have a great future. India has experienced an amazing amount of growth and reform in a very short time.
To keep pace, I hope you continue to fight back the temptation to put on the brakes and put up walls--continued economic success will only result from transparency and openness--not protectionism and isolationism.
We are proud to be India's partner. Together we will work to expand and enhance the international market, and we will work to ensure that the U.S.-Indian relationship enhances prosperity and improves the lives of our citizens.