Trade ties profit from Clinton's visit<\/p>\n
By Madhu Nainan<\/p>\n
BOMBAY (AFP): Indo-U.S. economic ties were the big winner from
\nPresident Bill Clinton's state visit to India, with US$4 billion
\nin business agreements heralding the beginning of a new trade
\nrelationship.<\/p>\n
\"The number of signings are testament to a new and fresh
\ninitiative in Indo-U.S. commercial and economic relations,\" U.S.
\nCommerce Secretary William Daley said prior to Clinton's
\ndeparture last Saturday.<\/p>\n
Differences between Washington and New Delhi over WTO-related
\nissues were largely kept in the background during the five-day
\nvisit, as Indian industry, especially the IT sector, pulled out
\nthe stops for the large business delegation accompanying Clinton<\/p>\n
\"The major story of the visit was the re-affirmation of the
\nparadigm shift not so much in government relations, but in
\npeople-to-people and business-to business relations,\" said Sanjay
\nBaru, a senior economist at the Indian Council for Research in
\nInternational Economic Relations .<\/p>\n
As well as the business agreements, separate accords were
\nreached for the U.S. Export-Import Bank to provide $1 billion in
\ncredit lines to help Indian financial institutions fund small-and
\nmedium-sized businesses.<\/p>\n
Clinton made a point during his visit of stopping off in the
\nsouthern infotech showcase city of Hyderabad, reflecting
\nincreasing U.S. recognition of the IT revolution under way in
\nIndia.<\/p>\n
Prime Minister Atal Behari Vajpayee's government says India's
\nIT industry could balloon to $100 billion from the present $5
\nbillion in just a decade.<\/p>\n
\"Clinton very clearly mentioned that the knowledge economy was
\ngoing to change the way we look at the world,\" said Dewang Mehta,
\npresident of the National Association of Software Companies
\n(NASSCOM).<\/p>\n
\"His support is very positive for our business. We expect more
\nbusiness, more U.S. investments in this sector,\" Mehta said.<\/p>\n
Ramesh Dalal, president of the Indo-American Chamber of
\nCommerce, hoped Clinton's visit would encourage U.S. businesses
\nto follow through on their in-principle agreements with Indian
\nfirms.<\/p>\n
\"We hope the pace of U.S. investments will now be faster.
\nThere should be no reason for U.S. investors not to invest more
\nmoney in India now,\" Dalal said.<\/p>\n
According to Indian government figures, the national Foreign
\nInvestment Promotion Board approved U.S. investments worth some
\n$12.4 billion between 1991 and 1998, of which only $1.6 billion
\nactually materialized.<\/p>\n
The hope among U.S. investors is that Clinton's visit will
\npush India to further reduce bureaucratic hurdles to setting up
\nprojects here, some of which require up to 40 separate government
\napprovals.<\/p>\n
\"Indian Finance Minister Yashwant Sinha assured a U.S.
\ndelegation that New Delhi was in the process of streamlining
\npolicies as much as possible,\" said Gary Benanav, chief executive
\nofficer of New York Life Insurance.<\/p>\n
Vijay Kalantri, president of the All India Association of
\nIndustries, cautioned against expecting too much, too soon in the
\nwake of Clinton's visit.<\/p>\n
\"All the deals signed may not materialize immediately, so our
\nemphasis should be on vigorous implementation,\" Kalantri said.<\/p>\n
\"What is more important is that Clinton gave a clear
\nindication that the United States wants better economic and
\npolitical ties with India.\"<\/p>\n
Kalantri also argued that India should use the feel-good
\natmosphere created by the visit to push for greater access to
\nIndian products in U.S. markets.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/trade-ties-profit-from-clintons-visit-1447893297",
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