India for free flow of professionals, exports

Minister for Commerce and Industry, Anand Sharma

NEW YORK: The most compelling challenge between India and the US on the trade front is for the US to allow free flow of exports from India, said India's newly inducted Minister for Commerce and Industry, Anand Sharma.

Addressing a luncheon gathering of trade and industry specialists at the Asia Society in New York on June 19, Sharma said Indian exports should be welcomed by the US, especially those from labor intensive sectors like gem and jewelry, leather and garment industry.

The other major challenge for India currently is the restrictions on the movement of professionals, the minister said. "We want the US to allow the movement of Indian professionals coming here on the H1B visas," he said. "It's a two-way process. There should not be any barriers in such tough economic times, but a deeper engagement between the two countries."

Sharma urged the industry representatives in both countries to work towards dispelling the myth that Indians "take away jobs". "In fact, Indian companies investing in the US have created 300,000 jobs and have invested over $100 billion. In this difficult time, let us not create barriers. The issue needs a focused approach," he said.

Sharma was delivering the keynote address at the CII-USIBC sponsored CEO Forum series of Asia Society with a CEO delegation from India to discuss the post election landscape vis-à-vis the next wave of investment opportunities in India.

Despite being hit hard by the economic downturn, investments into India have not dried up, the minister said. "India is still attracting foreign investments. We have attracted close to $27 billion in Foreign Direct Investment, $2 billion in the month of May itself," he said. "We are closing our growth rate this year at 7 percent and we have the confidence to take the growth rate back to 9 percent by next year."

On the election results in India, the minister said the peoples' verdict to bring the Congress Party led UPA government back to power in India reflects their wish for continuity and an endorsement of the government's policies over the last five years. "It was also a vote for development and stability," he added.

The Manmohan Singh government's developmental programs have brought tens of millions of Indians out of the poverty net, Sharma said. "The despair and feeling of helplessness has been removed. People now know they have fall back options in government sponsored welfare, job and developmental programs," he said.

Given the volatility of India's extended neighborhood, Sharma said, "We hope we will be able to achieve what Europe or this part of the world has achieved. We want to move forward but not alone - we want to move the entire region forward."

Consulate Reception

Later the same evening, Minister Sharma attended a reception hosted in his honor by the Consul General of India in New York Ambassador Prabhu Dayal. Addressing the gathering of community representatives, Sharma said the Manmohan Singh government has "started the second innings with the same degree of commitment" as it had in the first term. "We approach it with humility and gratitude," he said.

Elaborating upon the recently concluded General Elections in India, Sharma remarked on the "clarity and vision, with which people of India have exercised their judgment," and reiterated Prime Minister Dr. Manmohan Singh's "continuing commitment to economic and social development" for all sections of the society.

Around a hundred and seventy guests, comprising of American and Indian- American dignitaries from the Tri-State area, attended the event. 

Meeting with Secretary Clinton

Earlier in Washington DC, Sharma met with Secretary of State Hillary Clinton on June 17. The discussions covered the effect of the economic downturn on the two economies and the way ahead for WTO negotiations. The Minister said that while a perfect solution may be elusive, it should be possible to find a fair solution acceptable to all parties, while keeping in mind that development was central to the Doha Round. He also briefed Secretary Clinton about the programs being undertaken by the Indian government to stimulate domestic demand while providing a social security net to the most vulnerable sections of the society, including through the successful implementation of the national Rural Employment Guarantee Program.

At the USIBC Summit

Speaking at the Annual Summit of the US-India Business Council in the capital, which was also addressed by Secretary of State Hillary Clinton, the minister underlined that the existing level of trade and economic engagement was not commensurate with the potential which existed in the wake of India's far-reaching economic liberalization. Citing the findings of the study entitled "Contribution of the Indian industry to the US economy" prepared for the India Brand Equity Foundation which he released at the Summit, the Minister mentioned that over 2004-07, Indian industry had contributed $105 billion to the US economy and created 300,000 jobs. This, he said, revealed a story of commitment to optimize and to invest in the future of the relationship. He underlined that India and the US were partners in progress and could together shape the 21st century.

Meeting with USTR Kirk

Later in the day, Sharma met United States Trade Representative Ambassador Ron Kirk. This was his second meeting with Ambassador Kirk; the two had met on the sidelines of the Cairns Ministerial Group meeting in Bali. Both sides discussed bilateral issues of mutual interest and explored the ways and means for increasing bilateral trade and investment.

They agreed to revive the dialogue on trade issues and to focus on resolving them to the extent feasible. Sharma emphasized that there were numerous opportunities that could be harnessed in the bilateral economic relationship even against the background of the global downturn. They welcomed the move towards resumption of Doha talks and agreed to work together towards resolving outstanding issues. Minister Sharma invited Ambassador Kirk to visit India for the meeting of the G 20 Trade Ministers as well as for bilateral discussions.

Sharma also had a meeting at the US Congress with the leadership of the Sub-Committee on Trade of the House Ways and Means Committee. In his meeting with Chairman of the Sub-Committee on Trade Representative Sander Levin and Ranking Member Kevin Brady, the focus was on the Doha Round. The Minister shared with the Congressmen some details of the steady growth in Indian investments in the United States.

SRIREKHA  N. CHAKRAVARTY