Immense Scope for greater trade trade cooperation between India and US is immense: Kamal Nath

Shri Kamal Nath, Minister of Commerce & Industry, has said that there is immense scope to have greater trade, investment and technology cooperation between India and USA. "The US is India’s largest trading partner and foremost export destination accounting for 16.83% of India’s export and around 6.34% of India’s imports in 2005-06", he noted. While speaking at the Plenary Session on "Listening to one another - The importance of a deeper trade relationship" of the Indo-US Business Council at Washington last evening, the Minister called for a partnership between the two countries and hoped that US investors would avail the growing opportunities available in India’s agriculture, energy, tourism, civil aviation and other sectors.

Shri Kamal Nath informed that a majority of US firms in India have been reporting double-digit year on year growth and highlighted the success of companies like Coke, US based banks viz., Bank of America and Citibank, GE etc., in India. The Minister also quoted a Goldman Sachs report predicting that productivity growth will help India sustain an over 8% growth for India until 2020 and become the world’s second largest economy by 2050.

During the period April 2006-February 2007, India’s exports to US was US $ 16.9 billion while imports were valued at US $ 9.2 billion. The US is also the most important destination of Indian investments abroad. Major items of Indian exports to US are gems & jewellery ($ 4.2 billion), RMG cotton including accessories ($ 2 billion), machinery & instruments ($ 1.1 billion). Major import items from US are electronic items ($ 1.4 billion), machinery except electric & electronics ($ 1.3 billion) and fertilisers ($ 0.7 billion).

In terms of foreign direct investment (FDI), the US is the second highest foreign direct investor in India and FDI approvals of US $ 856 million was accorded during the year 2006-07. Total FDI from USA since 1991 amounts to US $ 5.9 billion.

Source : Press Information Bureau

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