Ease of biz issues to affect US investments to India: Richard Verma

He also said that US sees India as a global power and its commitment to relationship with India is real and serious

Problems related to ease of doing business such as taxation, regulatory burdens and legal issues can deter American investors from investing in India, US Ambassador Richard Verma said today even as he hoped that the $500 billion bilateral trade target would be achieved.

"On the trade and investment front, we have been taking up the ease of doing business factors that sometimes can deter the US companies and investors such as tax and legal certainty and easing regulatory burdens.

"I think we are making progress in that regard and it's not just US companies that are voicing those concerns, it is also Indian companies who are coming together and voicing similar concerns," Verma said at an Observer Research Foundation (ORF) function.

He said in the last Trade Policy Forum meeting, both sides discussed in detail the trade relationships with the goal of continuing to break down trade barriers and laying the foundation for reaching the trade target of $500 billion.

"On the economic side, the data suggests that we have come a long way. We have crossed $105 billion, but it's still the pockets compared to the size of our economy and the number of people we trade with," he said.

In 2005, the two-way trade between the countries was about $35 billion, which exceeded to $105 billion last year.

"I really believe that we can get that (target)...Could we do more. We could do more...We may have ups and downs in our relationship. We may have been on a roller-coaster in 50-60 years (but) I don't think there is any question.

"We have reached a point where our strategic and economic importance of this relationship is unstoppable," he added.

Verma said the trade figures and other numbers are the evidences which clearly reflect the increasing economies ties between the two countries.

About 30,000 Indian students visited the US in 2005 and the number rose to 1,30,000 last year. In the same year, 4 lakh Indians visited America while it was 1.2 million in the previous year.

"In 2005, there were 200 US companies in India and now there are over 500, employing several million people," US Ambassador to India Richard Verma said, adding "in 2005, we had a zero dollar in defence sales" and now it has crossed $10 billion "even we are now talking about building and producing defence items."

Agriculture trade between the two countries too has increased to $7 billion from $1.5 billion in 2005.

Reaffirming America's commitment to foster relations with India, Verma said that the US does not see India as a balancing power, "but a global power, as a leading power. We support India's rise".

He said the US commitment to its relationship is "real and serious" and in the interest of "collective national interest" of both the nations.

On the strategic side, the US diplomat said that both the sides have deepened military relationships.

Talking about army and naval forces exercises, Verma said, in the last 3 months "we have done the Malabar exercise with Japanese navy. We have done army exercise, special forces exercise with Ministry of Home Affairs for the first time ever. We will do the red flag exercise which is now confirmed in spring next year in Alaska."

He further said that these exercises are not simply on paper or power point presentations to each others militaries but these are "our best fighters, both man and woman, coming together to talk about how we should respond to the humanitarian crisis and how we deploy force if necessary."

He also informed that next week Union Minister Manohar Parrikar will visit the US pacific command headquarters in Hawaii, becoming the first Indian Defence Minister to do so.

Citing Boeing's example, Verma said India and the US are also doing production and development in India.

Boeing has signed a $3 billion agreement to produce Apache and Chinook helicopters for the Indian Air Force and much of the components will be made in India, he added.

Talking about the recently concluded climate talks in Paris, he said leaders of both the countries reaffirmed the deeper partnership.

"The US President recognises that the Paris climate agreement must protect the abilities of countries like India to promote socio-economic development," he said.

India and the US are working in several areas and that include agriculture, health, deep sea exploration, space, cyber security and education.

"We are working together and will continue to do so in the months and years ahead," he said.

Verma added that India has to grapple with several developmental challenges, including 300 million people with no access to electricity, air pollution, massive urbanization, one million young people entering job markets every month, among others.

"These are real challenges for India that occur on a scale that most countries in the world will find difficult to grasp," he said.

But these provide tremendous opportunities also for India, he added.