SME sector may get thrust during Obama visit: Shankar

The small and medium businesses are likely to get a boost during American President Barack Obama's visit this week, as both countries are looking to enhance their economic ties, Indian Ambassador to the US Meera Shankar said here today.

"As far as thrust during the President's visit is concerned, I think one area of focus is Small and Medium Enterprises (SMEs), because both sides want to engage in this business field in a very broad based (manner)...," Shankar said at a Ficci meet.

One of Obama administration's thrust areas is the SME sector, a vital industry that can help in creating more jobs for the American economy. Annual exports from the American SMEs is estimated to be worth 2.8 lakh.

In India too, the sector employs lakhs of people at various levels. Going by estimates, about 2.6 crore SMEs account for nearly 8 per cent of Indian GDP.

Apart from focusing on SMEs, Shankar said US companies are also exploring investment opportunities in India's growing infrastructure sector.

"...A lot of (US) financial companies are now taking interest in putting together or exploring the possibility of investments in infrastructure sector.

"We are certainly going to see more involvement of the American companies (in infrastructure sector)," she said.

To sustain the rapid economic growth, India is hoping to see a whopping investment of $1 trillion in the country's infrastructure segment in the coming years.

Shankar said, "The US is increasingly looking at India in terms of its ability to contribute to the global agenda and in terms of how we can partner together not only for better economic prosperity on both sides but also in terms of brining greater peace, stability prosperity."

She also expressed hope that India-US bilateral trade is expected to touch $50 billion in the near future.

The US, a world leader in technology, would be helping India in weather prediction, a move that would help farmers dependent on rains, she noted.

"Amongst the things that we will be signing or will be finalising during the visit, we hope that there will be something with regard to weather prediction," Shankar said.

Obama's maiden visit to India as President begins on November 6.