India’s commitment to invest in infrastructure, including the port and shipping sector, is attracting investors from the United States that are hopeful of getting a share of the pie amid a sluggish economic environment in their own country but trade restrictions remain a hurdle, according to a top US Commerce department official.
Francisco J. Sanchez . Bloomberg.
“It is in India’s interest to improve its business climate to attract investments,” said Francisco J. Sanchez during a media interaction in Chennai. “It is up to India to be competitive enough to attract foreign direct investment. Currently India ranks 132 on the World Bank ease of doing business index.”
The Obama administration official spoke after inaugurating an event introducing the first ever delegation of US Ports and Maritime technology trade mission to India.
India, Asia’s third largest economy, plans to spend as much as Rs 3 trillion on its ports in the decade ending 2020 to triple its cargo-handling capacity to 3.2 billion tonnes, according to the maritime agenda for the decade announced by the shipping ministry in January 2011.
Sanchez underlined that India’s infrastructure requirements presents an important opportunity for US Companies.
“President Obama’s goal is to double US Exports to the world by 2015 and I would be happy if we could also double our exports to India,” Sanchez told reporters. “By 2030 India will have 65 cities with a million or more population and each one of them will need power generation, smart grids and waste water treatment.”
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Francisco J. Sanchez says the US is hoping to partner with India in a variety of areas including shipping, but adds that restrictions in areas like solar technology are coming in the way.
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Still, recent regulations of the Indian government in sectors such as solar power that restrict local firms from importing solar panels are a concern, the US government official said.
“We are big believers in alternative energy and the US has a lot of technology available in the solar energy space,” Sanchez said. “We are also big believers in an open economy. So any restrictions will have the effect of limiting the very best technology from coming into your country. We believe that local content requirements aren’t the best way to foster an industry.”
India’s bilateral trade with the US stood at $58 billion in 2011, up from $49 billion in 2010. Indian exports to the US are higher than America’s exports to India.