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Smaller US companies should also invest in India: Information Minister
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It is a welcome sign in the scenario of stirring economy that American businessmen are trying through how to include India in their global strategies, said Mr. Priya Ranjan Das Munshi, Indian Minister for Information & Broadcasting while addressing the visiting US business delegates at a meeting organized by US-ASIA Business Forum at New Delhi on 11th January 2007. The Minister further said that the two countries had resolved the longstanding dispute over India getting entry into US market but expressed concern that despite 8 percent economic growth and 30 percent surge in US exports to India in 2005, the vast market of India accounted for only one percent of total US exports. Talking about US investments in India, Mr. Munshi said that so far only US multinationals had shown interest in this regard and India was also looking towards investments form smaller US companies as well. He informed that India was coming up with the idea of coordinating mechanism to create synergies between efforts of various industry and bilateral trade forums to accelerate the pace of ties among small and medium enterprises of the two countries. Dr. R. K. Dhawan, the Northern Region Chairman of FIEO in his address said that with liberalisation taking place in India since 1991, world business confidence was building up in the strength of the Indian economy and India had now become a strategic hub for private equity which grew to USD 5.4 billion in the first three quarters of 2006 from barely USD 20 million in 1996. Dr. Dhawan also said that the Indian economy today was the second fastest growing economy in the world and it was fast gaining recognition as an attractive destination for investment. The FIEO official identified some of the key sectors in India having investment opportunities as food processing & agri-infrastructure development, bio-technology, financial sector, information technology, oil & natural gas, power, telecommunications, roads & highways and retail business which is expected to grow by about 50% every year in next 10 years. India can be used as a base for third country exports apart from offering a vast consumer base. 237 SEZs have already been approved and 51 of them have been notified. Major investment opportunity exists for investment in SEZ both for targeting Indian market and exporting to high cost economy. "US businessmen should think of investing in Indian SEZs which have a large promise for the future," added Dr. Dhawan. Speaking further, he thanked Mr. Kishore Kaul, President, US Asian Business Forum for bridging the gap between Holywood and Bolywood. Mr. Kaul is associated with various socio-economic forums and NGOs in US. Mr. Subhash Goyal, President, India Chapter, US Asia Business Forum; who is also a Managing Committee Member of FIEO, on this occasion said that services industry in India was witnessing a buoyant growth and the Forum could promote cooperation between India and US in the sectors which could benefit both the economies in the long run. |
