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| India-US Bilateral Trades |
The bilateral trade between
India and United States (US) is likely to touch the huge $500 billion mark in next 10 years. This has been said by the US-India Business Council (USIBC), a
business advocacy organization for the US in India that aims to strengthen
trade and commercial ties between the two countries.
In the year of 2006 the bilateral trade between India and US was around
$25 billion only, and since then it has been increasing continuously with a
rock steady manner. Eventually the India-US
trade has crossed the $100 billion mark in last year, while the defence
trade between the two countries contributed a lot in that figure, as it figure
is around $10 billion (for defence only) in the last one decade.
The honorable chairman of USIBC Mr. Ajay Banga said a few things to
enlighten the bilateral trade opportunities between US and India. He was
talking to some press reporters along with the President of USIBC Ron Somers
and CII president Adi Godrej. Mr. Banga, who is also the CEO and President of
MasterCard, attended a leadership summit of USIBC and CII. The following is an
excerpt of what he said,
"Going
by the massive fillip in bilateral trade in recent years, I am hopeful that the
two-way trade between the largest and the third largest economies in purchasing
power parity terms (US and India respectively), achieving our next target of
USD500 billion over the next one decade is possible if both the partners chart
out a larger strategy of engagement,"
In his briefing to the press Banga added that the bilateral trade should
focus on education, defence, energy and medical care among other important
sectors. He also said that the investments should be floated in making of
innovative properties and technology. It has to be mentioned here that earlier IMF Predicts India’sFY13 Growth Rate to 5.4% only.
CII President Mr. Adi Godrej said in the next few years India can really
play a big role in the US, and that role was getting recognition too by the
sates itself. He added that the India’s business and financial communities has
all the needed potentialities to reach the higher heights with the help of some
strategic collaboration and co-operation. He also highlighted the fact that the
involvement of the industry members have been increased a lot over the past few
years.
He explained the matter in his own style, and added a few visions of his
own in his speech. While discussing on reaching the bilateral trade target of
$500 billion he added,
"It
can be achieved if both the sides commit against protectionism, create enabling
frameworks such as the bilateral investment treaty, recognize the value of
labour mobility, focus on enhancing services trade, focus on investments and
value addition, and definitely get down to industry-level and state level
co-operation."
Ron Somers, the President of USIBC, also expressed his thoughts on the
whole matter. He said that the Pearson Institute will conduct a detailed study on
economic co-operation opportunities between the India and United States (US). He
added that the USIBC is also working on a financial study to set up India-US comprehensive
economic cooperation agreement, which will eventually help both the nations to
boost up the amount of bilateral trades.
In past few months the Indian Government especially the finance
department had taken quite a few reform measures to boost the Indian economy on
global scenario. In fact recently India has signed aDTAA agreement with Bhutan too. Mr. Ajay Banga did not forget to acknowledge that in his speech.
He eventually welcomed all the measures, and applauded the government for
taking such bold steps to return to the steady growth path. He told that the US
industry was looking forward to the increase of FDI cap in defence sector from
26% to 74 percent. As a matter of fact according to Banga the major portion of this
$500 billion India-US trade would come from the trades of defence and high-end
technology.
The US industry is in favor a bilateral investment with India due to the
rising market condition of the country. The trade co-operation treaty between
the two nations would benefit both the parties a lot. The US market is keen to
build a few more level playing fields in order to make the needed scope for all
important two-way FDI flows.
According to Ron Somers, defence was the one of the most important
sectors of mutual business co-operation between the two nations. He give a
suggestion to include the private sectors more and more in the involvement of
the bilateral trades, as it would help to deepen the mutual economic
partnership.
According to Adi Godrej, oil and gas could be two most particular fields
of business collaborations between India and the US, as many leading American
companies have already made great fortune in these two areas.
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