US Ambassador emphasizes on power & potential of Indo-US trade

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SME Times News Bureau | 12 Feb, 2016
US Ambassador to India, Richard Verma has said that a strong and stable India is one of the most important foreign priorities of US President.

At a meeting organized by FIEO in New Delhi on Thursday with him, Richard Verma mentioned that collective economic strength of the two nations is not only good for two countries but will help to steer the global economy during uncertain times.

Mentioning about the US economy, he said that USA has returned to a period of sustained growth with real GDP growing at 2.4 percent in 2014 and 2015. The unemployment rate remains at 4.9 percent, which is the lowest rate in 8 years. He pointed out that US companies continue their leadership of innovation in the IT, Telecommunications, Aerospace, Energy, Defense, Agriculture, and Pharmaceutical sectors.

Referring to the GSP program, he said that India is the largest beneficiary. Indian exporters received $4.4 billion dollars in tariff relief through GSP in 2014 alone. India’s trade surplus with the United States is $28 billion dollars. He further added that both countries need to do much more to grow two way trade and investment. Talking about the two way trade, he said that in 2014, US exports to India were 1.6% of total exports worldwide, while imports from India to the United States were only 2.3% of total imports in US. These numbers, he said are perhaps the most powerful indicator of how much opportunity exists to expand trade relationship between the two countries.

Ajay Sahai, DG & CEO pointed out that there are few challenges in the warm and robust relationship between the two countries including imports alerts and warning received by Indian pharmaceutical companies, the cost of employment visa and its availability to technical manpower, dispute on supply of solar equipments with domestically manufactured solar cells and the Market access for agriculture commodities like rice, mangoes, pomegranate and table grapes. DG & CEO suggested for a study to look into implication of US leading Trans Pacific Partnership (TPP) and India joining Regional Comprehensive Economic Partnership (RCEP) on the bilateral trade and investment between the two nations.

Subhash Goel, Member Managing Committee, FIEO informed about the formation of new economic reforms which have lowered non-agricultural tariffs, removed many non-tariff barriers and relaxed rules of foreign investments in several important sectors. He also pointed out that Indian economy has seen good growth and US-India trade has quintupled in the last 15 years. He mentioned that Indian Government is very keen to accelerate India’s trade with the world and US.

The meet was attended by over hundred representatives from leading companies from diversified sectors from all over India.