Obama,India Inc interaction to be one between equals

FICCI's President,Rajan Bharti Mittal,cited some numbers to prove this point.

When US President Barack Obama and the business delegation accompanying him interact with captains of Indian industry here tomorrow,a key differentiator from the past would be that it will be a meeting between equals.

In a short span of two decades since the country’s economy opened up,Indian businesses have come a long way,using the very hallmarks of American capitalism–free trade and innovation–to grow into multi-billion dollar corporations with global footprint.

Industry body FICCI’s President,Rajan Bharti Mittal,cited some numbers to prove this point. In the last 10-years,American companies have invested USD 11 billion here while the in the last four-years alone,including the two years of global financial meltdown,Indian companies have invested USD 5 billion in the US,he said.

“This is what makes this visit very different,” said Mittal,also the Vice-Chairman and Managing Director of Bharti Enterprises.

Indo-US bilateral trade is expected to touch USD 50 billion this year and is not excessively tilted in favour of either.

Domestic job creation through trade partnerships will be high on Obama’s agenda,who is expected to be accompanied by India-born chief of PepsiCo Indira Nooyi and 250 other industrialists.

The entourage will meet over 350 Indian corporate honchos,including Ratan Tata,Mukesh Ambani,Anand Mahindra,Deepak Parekh,Adi Godrej and Chanda Kochhar at a summit jointly organised by the FICCI in Mumbai’s Hotel Trident on Saturday.

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Mittal is doubtful if any big-ticket deals would be sealed during the visit,but says Indo-US economic ties will climb to a new high through the interactions.

“It is the macro issues which we expect him (Obama) to speak on and which will help take the relationship to a new level. A free market has been the US’ biggest export and we would like if he gives his views on the same,” he said.

The real big surprise from the visit can be an announcement to lift the embargo on high technology,dual-use trade,Mittal said.

The US-India Business Council,also an organiser of the summit to be held at one of the sites targeted by Pakistan-based terrorists in the 26/11 carnage,has framed a five-point programme with high technology trade at the top which will help the leading free-market democracies forge a stronger economic relationship.

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“It is high time we began treating each other as genuine partners — both in terms of our strategic relationship in defence,security,and in space,as well as in our very special knowledge partnership,” the Council president Ron Somers said in a statement.

Embargoes on transfer of high technology components useful in the space,defence,aeronautics sectors are a part of sanctions on India since 1998 for conducting nuclear tests.

From the US’ stand-point,there are concerns regarding relaxing foreign companies’ participation in financial services,insurance and multi-brand retail while Indians will be keenly watching statements on outsourcing,levying of high visa fees and technology transfers,Mittal said.

Trade experts say even a minor give-and-take by either side on contentious issues will help assuage concerns and lead to creation of more domestic jobs.

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Somers and Mittal pointed out that other partnerships emerging from the meeting will be in the sectors of agriculture,education and health care.

Obama will also participate in a round table on agriculture where discussions on food security,and the role American companies specialising in genetically modified crop solutions can play,is expected to crop up.

The Confederation of Indian Industry said it expects “enhanced high technology co-operation” through bilateral agreements in aviation,space,defence and biotechnology during Obama’s visit.