NEW DELHI, Apr 25: India and the US need to push forward the bilateral investment treaty (BIT) which could pave the way for improving trade and investment between the two countries, US Ambassador to India Nancy Powell said today.
Addressing an event here, Powell, who resigned from the post of US Ambassador to India earlier this month, said that a logical next step in making significant advances in bilateral trade for the US and India is to sign a BIT.
“We are pleased that negotiators met face-to-face to continue technical discussions in February. We need to push forward these negotiations because a successful BIT will bring benefits to both countries, and it could also pave the way for more far-reaching agreements that could potentially yield much larger trade results for both our economies,” she said.
The proposed treaty, which New Delhi calls Bilateral Investment Protection and Promotion Agreement (BIPPA), seeks to protect investments between the two nations.
India has signed BIPPAs with 82 countries. However, it has put a freeze on these agreements following a spate of suits from telecom companies.
Powell also said that the US market is the largest, open and competitive market in the world and accounts for 19 per cent of the global economy, which is nearly USD 17 trillion in economic activity.
“Indian products are welcome, as are Brazilian, Chinese, and South African products. We welcome the competition and believe it encourages our companies to excel in their competitive niches.
“We believe India as well has the strength and resilience to meet competitive challenges, and we encourage India to lower tariff and non-tariff barriers as a first step to its own greater prosperity,” she said.
India has received FDI worth USD 11.84 billion from the US during April 2000 and January 2014, according to the data of the commerce and industry ministry.
The bilateral trade between the countries stood at about USD 100 billion.
“Our economic relationship goes well beyond just trade. According to a recent Confederation of Indian Industry study, Indian companies have invested USD 17 billion in America, employ some 81,000 people, and India has emerged as one of the fastest growing sources of FDI into the US,” Powell said.
Likewise, she said that US companies are significant investors in India.
“Our unofficial estimate of 50 leading American companies suggests they employ a half million Indian citizens. In addition to helping create jobs and employment, US companies are also clear leaders in corporate social responsibility, gender equality, good governance, skills development, and technical capacity,” she added.
She said that the US is India’s largest trading partner and number one in trade for services and ranked second for merchandise.
India’s top exports to the US were manufactured goods, chemicals, apparel, textiles and IT services.
Powell, who has already submitted her resignation, said in a lighter vein that she would continue to visit India as a tourist.
On this, DIPP Secretary Amitabh Kant said: “We look forward to welcome you again and again as a tourist to India”. (PTI)
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