India, US should aim at achieving $220 bn trade: Assocham

India and the US should aim at achieving the bilateral trade target of $220 billion in the next 10 years, to strengthen the economic ties between the two nations, an industry body said today.

During 2009-10, the trade between the two countries stood at $36 billion.

"Over the period of 10 years, both the nations can become much more significant economic partners. They should set up a target of doubling bilateral trade every four years and aim at touching $220 billion trade level by 2020," Assocham President Swati Piramal said in a statement.

Considering that India accounts for a merely 1.3 per cent of the US trade, the chamber said that there was a substantial potential to increase the bilateral trade.

Assocham said that India and the US needed to identify items of mass demand in each other's markets and should make an attempt to meet these demands.

"India's top exports to the US consist of value-added products, while the US imports large volumes of items like mineral fuels, vehicle parts, machinery and electrical equipment," Assocham said.

It said that India's exports in these products can be significantly increased. Among the other items which America can export to India are high-technology products such as computer hardware, semi-conductors and telecommunications equipment, it said.

Besides, the chamber said, "There is a major need in India to upgrade civil aviation capabilities and the US is best placed to assist and collaborate in this regard."

The US has remained India's leading trading partner, a primary source of investment and provides significant aid support to India, Assocham said.

Besides, the chamber said, there is a need to put in place an Extensive Commerce and Trade Cooperation Agreement covering both goods and services.

Also, protectionist measures must be avoided. Referring to the WTO Doha Round negotiations, there is a need to overcome certain issues before the two countries can build an atmosphere for free and fair trade," Assocham said.