India, US ink pact for more private involvement to boost trade

India and US have entered into a pact that will pave way for increased participation of the private sector in areas like infrastructure, healthcare and energy, to enhance bilateral trade and investment.

Indian Commerce and Industry Minister Anand Sharma and US Trade Representative Ron Kirk yesterday signed Framework for Cooperation on Trade and Investment and launched an initiative--'Integrating US and Indian Small Businesses into the Global Supply Chain'.

Under the Framework, the two sides intend to meet the objectives of developing and enforcing trade policies and fostering a trade-enhancing environment.

"By signing this Framework...We want to create the right environment to ensure that the relationship brings maximum benefit to the maximum number of people. We will do so by promoting inclusive growth," Sharma said.

The two sides would take initiatives like enhancing opportunities for the private sector partnerships in infrastructure projects, cooperation in the healthcare, education, IT, energy and environmental services industries.

The initiative on the SMEs could create new opportunities for small businesses as well as large firms through greater public awareness, enhanced public-private collaboration, and a sharper focus on the benefits of large company and SME collaboration, the USTR said.

"We have recognised the contribution and potential of SMEs in our trade and investment agenda by adopting the SME initiative," Sharma said. The two-way trade was $40 billion in 2008-09.