| |
IACC's
Economic Summit
to
Further Forge Indo-US
Ties
The Indian economy
is on an ever-increasing
growth curve. The
US Economy is showing
signs of recovery.
India-US relationship
has evolved into
a truly comprehensive
partnership of mutual
trust and confidence,
intensifying political
dialogue that is
increasingly global
in reach, and deepening
strategic understanding.
India and the US
have multi faceted
relations in the
field of politics,
economics and commerce.
India-US economic
relations in the
form of bilateral
investments and
trade constitute
important elements
in India-US bilateral
relations particularly
because India is
now the second fastest
growing economy
in the world and
the US is the world's
largest economy.
The cumulative FDI
inflows since 2000
and up to July 2009
amounted to USD
100.33 billion,
with the inflows
in the first four
months of the current
financial year amounting
to USD 10.49 billion,
according to DIPP
and two-way trade
has increased from
USD 14,353.90 (2000)
to USD 43,386.50
(2008).
Improving global
sentiment and a
growing conducive
environment in India
are increasingly
facilitating foreign
investors' role
in the country currently.
Several other factors
being attributed
to the revival in
foreign direct investments
(FDI) in the country
include liberal
investment policies
and reforms, innovative
and technologically
advanced products
being manufactured
in India and low
cost and effective
solutions.
India has been ranked
at the third place
in global foreign
direct investments
this year, following
the economic meltdown,
and will continue
to remain among
the top five attractive
destinations for
international investors
during the next
two years, according
to United Nations
Conference on Trade
and Development
(UNCTAD) in a new
report on world
investment prospects
titled, 'World Investment
Prospects Survey
2009-2011.
The world's oldest
democracy (US) and
the world's largest
democracy (India)
are natural partners,
sharing important
interests and fundamental
democratic values.
The Indo-US relationship
has entered qualitatively
a new phase over
the years. Both
the countries are
engaged in discussing
various activities
like trade, education,
energy, environment,
science & technology,
aviation, infrastructure,
agriculture and
defense. A strong
partnership between
the two countries
can help both economies
achieve a high and
sustainable growth.
The Indo-American
Chamber of Commerce
(IACC) is hosting
its flagship event
6th Indo-US Economic
Summit: Synergizing
Partnerships for
Growth on 16 and
17 February 2010
in New Delhi. Finance
Minister Pranab
Mukherjee has been
invited to be the
Chief Guest. Eminent
corporate representatives
will make presentations
at the Summit.
Minister for Human
Resources Development
Kapil Sibal will
deliver the Inaugural
Address on Day II,
17 February 2010.
Infrastructure
The key to sustaining
India's growth lies
in developing its
infrastructure.
The government is
targeting an investment
of USD 20.38 billion
over the next two
years in the infrastructure
sector. The scheme
aims to take up
infrastructure projects
under public-private
partnership (PPP)
with minimal private
investment. According
to the Planning
Commission, there
is an investment
opportunity of USD
25 billion by 2011-12
in India's shipping
and ports sectors,
as the country seeks
to double its ports
capacity to 1,500
million tonnes.
The government plans
to attract private
players through
the PPP mode for
the development
of over 300 airports
and airstrips. It
would invest USD
9 billion to modernize
existing airports
by 2010.
Aerospace &
Aviation
The Indian aviation
industry is one
of the fastest growing
aviation industries
in the world. The
government's open
sky policy has led
to many overseas
players entering
the Indian aviation
market. The Indian
Civil Aviation market
grew at a compound
annual growth rate
(CAGR) of 18 percent,
and was worth USD
5.6 billion in 2008.
It is anticipated
that India's MRO
(maintenance, repair
and overhaul) segment
will grow at 10
percent, reaching
USD 1.17 Billion
by 2010 and USD
2.6 Billion by 2020.
The Indian aerospace
industry has an
expanding consumer
base and attracted
by the rapid growth
of the industry,
several big global
players are looking
to enter the market.
The government has
undertaken liberalization
process in the investment
policies, particularly
in civil aviation
segment. The Indian
defense industry
is expected to reach
in excess of USD
100 billion in the
next 10 years. There
is tremendous scope
for Indian public
and private companies
to partner with
American companies.
Energy: Conventional,
Renewable, Nuclear
Although India is
the 5th largest
energy consumer
in the world, it
offers tremendous
challenges &
opportunities for
both domestic and
global energy policy.
India has over 400
million people without
access to power
and per capital
energy consumption
is very low in comparison
to other developed
and developing countries.
In order to eradicate
poverty and accomplish
the human development
goals, the primary
energy supply has
to rise by 3-4 times
by the year 2031.
In recent years,
energy sector has
been receiving high
priority in the
planning process
of the Government
of India. Total
12 nos. of UMPPs
(ultra mega power
projects) of 4000
MW each are being
set up across India.
To address the concerns
of climate change,
Indian Government
has been preparing
the action plan
to raise the renewable
energy share to
10 percent from
the present level
of 7.0 percent in
total installed
generating capacity.
The India-US Energy
Dialogue, launched
in 2005, is aimed
at identifying areas
of cooperation and
collaboration to
mobilize secure,
clean reliable and
affordable sources
of energy. The historic
Indo-US Nuclear
Deal is step in
that direction.
According to the
Investment Commission
of India the Indian
Power Sector offers
an Investment Opportunity
of USD 150 billion
by 2012.
Services Export
India is fifteenth
in services output
and provides employment
to 23% of work force.
The sector has shown
an accelerated growth
rate of 7.5% in
19912000 up from
4.5% in 195180.
It has the largest
share in the GDP,
accounting for 55%
in 2007 up from
15% in 1950. Out
of the total output
of services, the
Business Services
(information technology,
information technology
enabled services,
business process
outsourcing) contribute
to a significant
portion. The share
of India's IT industry
to the country's
GDP increased from
4.8 % in 2005-06
to 7.0% in 2008.
India has acquired
its niche in high-end,
knowledge based
outsourcing with
seven Indian firms
being listed among
the top15 technology
outsourcing companies
in the world in
2009. In March 2009,
annual revenues
from outsourcing
operations in India
amounted to USD
60 billion and this
is expected to increase
to USD 225 billion
by 2020.
Education
The growth of the
Indian economy in
the recent past
and the need to
sustain it has forced
the Indian government
to accelerate the
process of developing
all the facets of
the Indian education
system. However,
there exits a plurality
in the Indian education
front with the existence
of a large number
of illiterates on
one hand and the
excellent quality
of human resources
that the country
produces every year
on the other. The
present education
system in India
mainly comprises
of primary education,
secondary education,
senior secondary
education and higher
education. The private
education market
in India is estimated
to be worth USD
40 billion in 2008
and will increase
to USD 68 billion
by 2012. However,
India continues
to face challenges.
Despite growing
investment in education,
40% of the population
is illiterate and
only 15% of the
students reach high
school. As education
is a very important
means for bringing
socio-economic change
in a society, various
measures are being
taken to enhance
the access of education
to all the sections
of the society.
Manufacturing
The rapid growth
of the Indian economy
is likely to make
India the fifth
largest consumer
market in the world
by 2025 and the
manufacturing sector
is estimated to
have a USD 180-billion
investment opportunity
over the next five
years. India is
fast emerging as
a global manufacturing
hub. Manufacturing
still contributes
around 15 per cent
of GDP of the country.
The manufacturing
scenario in India
completely changed
when the country
emerged as one of
the biggest knowledge
based manufacturing
destinations of
the world. Knowledge-based
manufacturing has
put India on the
global sourcing
platform with multinational
companies increasingly
viewing the country
as a low-cost, high
quality sourcing
hub for a wide range
of products. MNCs
are offshoring more
and more engineering-based
manufacturing work
to Indian companies.
The out sourced
product range also
includes engineering
goods, auto components,
pharma and textile
products. The global
market is tapping
on India's strengths
in product design,
customization with
creativity, quality
and value addition.
India is also fast
emerging as a major
innovation hub for
high quality mass
products in electronics
and other domains.
As a result of India's
value added, high-end
expertise, major
overseas companies
are increasingly
setting up their
R & D hub in
India.
Bollywood to Hollywood
Bollywood is the
largest film producer
in India and one
of the largest centers
of film production
in the world. This
industry, which
produces more than
1,000 films annually,
is rapidly going
“global”
with a considerable
overseas audience,
a new generation
of crossover movie
makers and signing
of new deals with
Hollywood, which
is far more organized
and advanced in
many relevant facets.
Bollywood continues
to face a number
of challenges such
as effective IPR
Protection viz.
copyright and piracy
related issues,
celebrity rights,
contracts, taxation
and insurance. These
issues need to be
addressed as Bollywood
and Hollywood come
closer together.
The Summit will
provide a forum
for:
• Exchange
of views on various
aspects of business
between India and
the US, including
investment opportunities
in both the countries
• Enhance
understanding of
business opportunities
between India and
the US
• Establish
one to one business
contacts
• Explore
new investment and
diversification
opportunities
• Opportunity
to network with
business leaders
and policy makers.
|
