United States will unveil a knowledge, trade initiative during President Bill Clinton's visit commencing from Sunday. Clinton will, himself, make public the US administration's business approach towards India at the speech to be delivered at Hyderabad.
This was divulged by sources close to US business houses operating in India. The knowledge, trade initiative would encompass infotech, pharma, biotech and sevices sector where both India and US could be major beneficiaries in terms of bilateral trade and foreign investment inflows.
Speaking at a news conference today organised by American Chambers of Commerce in India (Amcham) today, US Ambassador in New Delhi Richard Celeste gave firm indications that sanctions against India may be eased further coinciding with Clinton's visit to India.
Celeste said " over the time, sanctions will also be rolled back as part of harmonising relations with India". The top rung corporate leadership representing US companies in India seems to be mounting continued pressure on the Clinton administration to remove sanctions.
A meeting has been convened by US administration in June this year where Amcham representatives would press further for lifting sanctions altogether on India. However, Amcham circles feel that sanctions could be completely lifted during the visit of President Clinton.
If this is not done, the Amcham is willing to continue its lobbying with congressmen and senators to get the sanctions rolled back. "We are the biggest supporters of rolling back sanctions" said Sanjay Bhatnagar, Chief Executive of Enron in South Asia. Apparently, the Amcham representatives led by Bank of America Chief Arun Duggal also impressed upon the US Exim Bank Chief for lifting of sanctions on India. US Exim Chief was in India earlier this month.
Further, pressure seems to be mounting on Clinton administration "not to jeoparadise US business interests by continuing with sanctions".
Richard Celeste, meanwhile, said that US President's visit "would stimulate an extra-ordinary upward lift in US trade and infrastructure links, energise linkages between the two countries".
Apart from traditional areas of business with India, US also seeks to enter new sectors like Agriculture and related food processing industries. "We could provide value added investments in agriculture sector by seeking to manage the surpluses and put up food processing units" said Amcham representatives.
Amcham will coordinate the activities of 150-odd chief executives of major US companies accompanying President Clinton. Meanwhile, Amcham has also five point agenda to ensure enhanced FDI inflows into India. Amcham has a following of 300 member-business establishments flourishing in India.
Amcham, it was stated, will support the Indian Government's efforts to realise US $10 billion annual investments from US. As on date, US is the largest foreign investor in India with 87 per cent of FDI in power secotr, 77 per cent in telecom and 47 per cent in manufacturing sector apart from largescale portfolio investments in the stock markets. As on date, the trade balance is in favour of India at US $ 2.5 billion. The US companies, according to Amcham, contribute Rs 3,000 crore towards annual taxes in India which constitute 6 per cent of tax revenues in the country.
In a related development, Celeste indicated t hat during the US President's visit, issues like non-tariff barriers, access to Indian software professionals as well as road map for institutional framework to hormonise both commercial and political relations between the two countries may be drawn up. Proposed meeting between US Commerce Secretary William Daley and Industry Minister Murasoli Maran is being attached importance.
