Four point formula suggested for fresh thrust in Indo-US ties

Asserting that the US and India have worked too hard and come too far to lose the momentum of their bilateral ties, a senior Obama Administration official today suggested a four point formula, including lowering of barriers in FDI, to give the relationship a fresh thrust.

“First, we ought to lower barriers for foreign direct investment. The total two-way foreign direct investment between our countries is nearing USD 30 billion. We can do even better,” said William Burns, US Deputy Secretary of State.

The US, he said, is encouraged by the ongoing deliberations in New Delhi to ease offset requirements and raise caps on FDI.

Reforms in FDI and concluding the bilateral investment treaty will be instrumental in taking innovation, economic growth, and job creation to a new level in both the countries, he argued.

“Second, we need to continue transforming our defense trade relationship. Each of our countries took on a serious commitment to pursue specific co-production and co-development opportunities,” he said in his address to the India-US CEOs Forum meeting.

This is a significant step that also promises to increase high-technology trade and research and development collaboration in civilian sectors, he added.

“Third, we must deliver on the promise of the civil-nuclear agreement,” he said.

At the Strategic Dialogue last month, the two countries welcomed the intention of Westinghouse and the Nuclear Power Corporation of India to arrive at a commercial agreement by September.

“This will be a visible manifestation of our strategic partnership and an important step to securing a cleaner energy future,” he noted.

“Finally, we must keep our countries open to the fundamental driver of this partnership – our people. From Silicon Valley to Wall Street, and Cambridge to Washington, Indian Americans and Indian citizens are making a profound impact here,” he said.