New Delhi: The Indo American Chamber of Commerce (IACC), a bi-national industry lobbying body, is planning to launch an Indo-US business confidence index to quantify the state of business relations between the two countries and serve the needs of Indian companies and businessmen that wish to do business with the US and vice versa.
The confidence index, the first of its kind, will help businessmen, investors, banks, institutions, analysts, academia and the governments of the two countries to understand the state of business relations between the two. The index, expected to be launched by September this year, will start as a quarterly measure.
“The concept of Indo-US business confidence index was mooted in a recent brainstorming meeting of the chamber,” Deepak Pahwa, president, IACC, said. “We want to support the increase in the scope of economic cooperation through out-of-box services such as the business confidence index.”
Two-way trade between India and US was $32 billion in 2006, up from $27 billion in the previous year. The index will measure business confidence using tangible and intangible parameters such as bilateral trade, investment, technology imports, defence trade, economic policy and business expectations among large and small companies of India and the United States.
The Indo American chamber facilitates business collaborations, joint ventures, marketing tie-ups and strategic alliances between Indian and American companies. It also promotes bilateral trade.
An example of a policy tweak would be the export of mangoes to the US and India allowing the import of Harley Davidson bikes, Pahwa said.
IACC will develop the index with partners, which it declined to name.
“The partners are likely to be established consultancies or organizations from both India and US, which have experts who can construct these indices sifting through several database in both the countries,” he said.
Data in India is traditionally tougher to come by than that in the US as its collection is not as advanced. However, as the index focuses on a narrow subject, it will not be difficult to find appropriate data on tangible parameters, Arun Maira, chairman, Boston Consulting Group, India, said.
But measuring intangible parameters will not be easy.