US funds for projects in jeopardy

With the current economic crisis prevailing in the US economy, funding for infrastructure projects from US banks could dry up.

Speaking at an interactive seminar organised by Indian Chamber of Commerce, John Davison, minister-counselor for economic affairs at the US Embassy at Delhi, warned, “with the current market crisis in US and global liquidity, financing infrastructure projects would become a real issue.”

US funding had shot up last year for infrastructure projects.

The US government rescue package, if passed, could cushion the meltdown of the US economy. There were some sectors in US still doing well and the administration would try to restore confidence in credit markets, said Davison. Total trade between India and USA was worth $41.6 billion in 2007 with the US exports to India being at $17.5 billion, up 75 percent over the previous year, while US imports from India touched $24.1 billion, up 10 percent over the previous year.

Davison said that unlike the relationship between USA and China, the trade deficit with India was narrowing and there existed opportunity for increasing US-India trade both ways.

American investments in India had matured from basic outsourcing to contracts based on India's high-end research and development capabilities, the availability of a large pool of skilled and educated individuals, and the ability to produce cutting edge products and technology in globally competitive cost.

Dialogue between the two countries in sectors like Information Technology and communication, coal, renewable energy and nuclear power and climate change, to be addressed jointly by both countries, was on.

The demand for US visas had risen three fold in keeping with increased cultural, social and trade exchanges.

The US embassy in india conducted 700,000 visa interviews last year and this was expected to increase to 800,000 this year.