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India's growing economy will become more essential for US businesses: USIBC

"As its population urbanises and enters the global middle class, its appetite for American goods, innovation, and culture will only expand"

President of the US India Business Council (USIBC) Atul Keshap

President of the US India Business Council (USIBC) Atul Keshap

Press Trust of India Washington
The economic growth of India offers an opportunity for US businesses and advancing the bilateral trade ties might be one of the most important projects of the time, the president of a top American trade body has said.
President of the US India Business Council (USIBC) Atul Keshap said on Wednesday that US' business-to-business ties with India are directly creating good jobs for the American middle class.
He said this year saw US-India bilateral trade cross USD 190 billion, and with that American exports of industrial machinery, pharmaceuticals, and electronics equipment, all increased.
As India continues to grow, its economy will become more essential for American businesses. As its population urbanises and enters the global middle class, its appetite for American goods, innovation, and culture will only expand, he said at an event here on Wednesday.
Keshap said as India pursues its ambitions of becoming a global manufacturing hub, its demand for the best American industrial equipment and IP will rapidly increase.
In short, India's economic rise is here, and it is making it among the most important export markets for industries that support American jobs, he said.
Indian citizens and companies will be buying the goods that citizens in your districts make: Automobile components, transition fuels, microchips, agricultural goods, and so much more, he said.
The changes I've seen in India in my life are just unbelievable and impressive. So what we need to do now is push the accelerator pedal. US and India have to achieve escape velocity. That was a slogan given to me by a friend who's an official in the White House. He said it's time to talk about escape velocity, he said.
He said there is nothing more important for Washington than to work on the relationship with India.
At the end of the day, democracies take care of their people and democracies can trust each other. The pandemic reinforced the bonds of trust and affection between the American and Indian people.
As India grows, in fact, booms, it is clear that it will help fuel not only India's prosperity, it is going to fuel America's prosperity in the 21st century, Keshap said.
Let's demand more of our governments, let's expect more liberalisation of trade and investment in both directions. India's economic rise is gonna be one of the happiest and greatest stories in the 21st century.
"The United States will complement that rise because we have a demographic advantage. We have an immigration and entrepreneurship engine in our country, and we have a vision, hope, and great commitment to the future happiness of the US, he said.
Speaking at the same event organised by Congressman Ro Khanna in his capacity as the Co-Chair of the Congressional India Caucus, US Deputy Secretary of Commerce Don Graves said India was the source of USD 14.5 billion in foreign direct investment into the US that created more than 70,000 jobs in the country.
India is the source of nearly USD 14.5 billion in foreign direct investment into the US in 2021, creating more than 70,000 jobs here in the country. We are expecting the largest-ever delegation of Indian investors that will attend next week's Select USA Investment Summit here in DC," he said.
The summit is an annual event held for directing business investment into the US. The US investment into India was valued at USD 45.5 billion in 2020, reflecting what is the true importance of the Indian market for US companies, Graves said.
"Our companies in India are estimated to employ more than 3 million people and which is an astounding level of commitment to the US-Indian commercial partnership. And, we are very optimistic about things going forward, he said.
More doors will open as Prime Minister Narendra Modi and Commerce Minister Piyush Goyal and the entire government continue to build on the significant progress that they have made in recent years in focusing on regulation standards and trade practices that are more attractive to foreign investors, especially from here in the US into India, he said.
This year we celebrate the large Boeing sale to Air India, John Deere's 25th anniversary in the Indian market and OSI systems expansion of its facilities in Hyderabad, along with many other milestones that will create jobs, improve the lives of Americans, and of course Indians, Graves said.
The US-India partnership is one of the "most consequential" relationships for both of the countries, building on more than 75 years of diplomatic relations between the world's oldest democracy and the world's largest democracy, and the ever-growing trade and investment ties, shared values and common interests that are "indispensable" in ensuring a free open and rules-based world order, he said.
"India is America's 10th largest trading partner and the total US-India trade in goods and services reached about USD 192 billion in 2022, nearly triple what it was 15 years ago. This year, the US became India's largest trading partner," Graves said. Indian Americans represent one of the largest immigrant communities in the US and continue to make tremendous contributions to all aspects of American life, he said.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Apr 27 2023 | 1:26 PM IST

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