‘US-India trade is still 1/10th that of US-China’

## From the 31st Anniversary Leadership Summit of USIBC, it was evident that the United States considers India an important economic partner. What according to you are the reasons for this?

India has been consistent in the implementation of economic reforms for the past 15 years, initiated by the then Finance Minister Manmohan Singh. The result is obvious: wealth has been created across every sector; India’s standard of living has increased substantially. India is a world leader in several key fields. The United States is attracted to India as the world’s largest free-market democracy.

## Is this a recent realization or has it evolved over the years?

Six different governments have come and gone since the initiation of economic reforms in 1991. Each of these successive governments has consistently advocated liberalization of the Indian economywhich is a solid indicator that there is a consensus across all party lines in favor of economic reforms.

## As head of the USIBC, how would you characterize the economic relations between India and the US?

We are at the cusp of a great opportunity and we must collectively seize the moment. This is not the time to rest on our laurels and fall into the somnambulance of complacency. The US-India investment and trade have never been better; but the plain fact is that it is still 1/10th that of the US-China trade. Why is that? We must work together to take our commercial and trade relationship to a whole, new level. To do this, we would hope India could rise to the occasion and provide the leadership necessary to match the US offer at the final WTO Doha round. We would welcome a signal that economic reforms are back on track: lifting FDI caps on insurance, opening pensions, successfully concluding a US-India commercial space launch agreement, engaging the US in significant defense cooperation would all be signs that the US-India relationship is on the fast track. For our part, US industry continues to advocate passage of legislation supporting civilian nuclear cooperation with Indiato establish a foundation of trust and mutual respect on which to build the US-India partnership.

## How do you expect the civilian nuclear agreement between the two nations to impact their overall economic relationship?

The US-India Business Council and its 206 member-companies, together with the entire US Chamber of Commerce at its 3 million member-companies believe strongly that a partnership based on mutual trust and respect will result in a bounty of opportunities for both economies that are beyond commercial measure. We have a chance to move history. The civilian nuclear cooperation initiative embodies the alignment of two great democracies for the 21st century.

## For the first time, the Vice-President addressed the USIBC meet and so did a number of luminaries from the corporate sector. What does it signify?

The Vice President’s appearance at USIBC’s 31st Anniversary Leadership Summit, along with numerous luminaries from both sides, including Ratan Tata, Dave Cote of Honeywell, Kiran Mazumdar Shaw of Biocon and Union Minister Kamal Nath, signifies the importance the US Administration, the Government of India and the private sectors from both countries place on the US- India strategic partnership. It is now our dutyas industry to consummate the partnership by assisting our respective governments in the delivery of the civilian nuclear dealand then working collaboratively as partners to implement the partnership. The possibilities are limitless.