The Hindu Business Line : PM urges trade panel to chalk out plans to boost ties with US

AS a preparation to his visit to the US next month, the Prime Minister, Dr Manmohan Singh, has chaired the first meeting of the Trade and Economic Relations Committee (TERC) and entrusted it with the task to chalk out plans for increased Indo-US economic exchange.

The Prime Minister told the members of the committee that India must increase the level of economic interaction with US and referred to China's economic engagement with the US, which was 10 times that of India.

"There is vast potential for increased trade and investment relations with the US. We must consider how we can realise this potential," Dr Singh said.

The high-powered TERC has been set up to function as a new institutional mechanism for evolving policies on economic relations with other countries.

The Prime Minister is the Chairman and his Principal Secretary is the convenor. Members of the committee include the Ministers of External Affairs, Finance, Commerce and Industry, the Deputy Chairman of the Planning Commission, the Chairman of the Prime Minister's Economic Advisory Council, the Chairman of the National Manufacturing Competitiveness Council and the National Security Advisor.

In his opening remarks at the meeting, Dr Singh said the Government had to devise a medium to long-term strategy for India's economic interaction with the world, with a special focus on relations with neighbours and major economic partners.

"Economic relations have come to increasingly influence strategic engagement. India's economic interaction with the world is still relatively limited and this must increase," Dr Singh said.

He also asked the TERC to devise a blue print to deal with challenges and opportunities provided by the process of globalisation.

The TERC will coordinate preparatory work on the strategy on economic relations with India's major economic partners, neighbours and regional economic groupings.

The committee may commission specialised studies, suggest mechanisms for promoting economic cooperation, suggest the scope and extent of economic engagement and identify countries and examine proposals for economic coordination with other countries.

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