The Hindu Business Line : `US keen on investing in India'

US investments in India will grow, but this growth will be based on the extent to which India makes itself an attractive destination for investors, according to the US Ambassador in India, Mr David C. Mulford.

Speaking at a press conference here on Tuesday, he said that over 1,400 US companies are registered in India. Many US companies, especially those in high-technology businesses, are extremely keen on investing in India, he added.

However, many US companies are also wary of investing in India because of the perception that foreign investors receive little support if their investments run into problems, he explained.

For example, issues such as those connected with the Dabhol power plant and the outstanding payments due to some US power companies working in Tamil Nadu cause concern among US investors, Mr Mulford said. India must do all it can to change this perception and resolve such "legacy issues", he added.

The US is hoping to increase its defence sales to India, said Mr Mulford. Similarly, in the civilian sphere, the US is hoping that India will allow foreign direct investment in areas such as retailing. Many large US retailers are keen on investing in India and such investments will be extremely useful for the country, he added.

The US President, Mr George W. Bush, is committed to building a long-lasting relationship with India, Mr Mulford said.

The `Next Steps in Strategic Partnership' (NSSP) initiative entered into by the two countries in January 2004 is an important move in this direction, he added. The NSSP initiative has, for instance, opened up high-tech commerce between the US and India, he pointed out. At the same time, there seems to be a political consensus in India on the desirability of a strong Indo-US relationship, he added.

Commenting on the ties between India and the US and also on the relationship between the US and Pakistan, Mr Mulford said that his country has a freestanding bilateral relationship with both India and Pakistan. However, he emphasised that the US cannot be in a position where its relationship with one of these countries is governed by the other country.

Asked about the difficulty faced by many Indians in getting visas for the US, Mr Mulford said that the visa rules themselves have not been changed.

Some procedures have been altered in the interests of security, he explained.

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