The Hindu Business Line : US wants India to open up more avenues for investment

Ahead of the largest ever trade mission's trip to India, comprising 175 companies, US has sought more opportunities for investments in the Indian broadcasting sector, postal reforms, along with elimination of non-tariff barriers in supply of medical devices.

The trade delegation, with companies from sectors including software, entertainment, consumer products, food and beverages, medical devices, insurance and finance, nuclear energy, would be visiting India for a three-day summit later this month.

Companies in the mission include Aeronautical Systems Inc (part replacement, component repair for older US supplied helicopters), Analogic Corporation (medical equipment), Arnold and Porter LLP (legal services for infrastructure sector), Aviall (A Boeing Company in aviation and defence supply chain management services), EMD Locomotives (railways), Exxon Mobile (petrochemical, liquefied natural gas) and UPS.

Eyeing opportunities here in the backdrop of Indo-US nuclear deal, several firms from nuclear energy sector like BWXT (heavy nuclear components), ConverDyn (nuclear fuel cycle services), GE Energy, Harmon, Wilmot and Brown (legal services in nuclear energy area), Nuclear Energy Institute, Thorium Power (Nuclear fuel and nuclear power generation) are also a part of the mission.

Based on an initial survey 46 per cent of the 175 participating companies are looking for new business opportunities in India, while about 14 per cent are seeking representation or distribution here and about 13 per cent are looking for joint ventures. Seven per cent of companies are seeking immediate sales and another seven per cent are participating in the mission for market research.

In a communication, Mr Franklin L. Lavin, Under Secretary for International Trade, International Trade Administration, US Department of Commerce, has stated, "There are other areas where we can work together to improve the US-India economic relationship. They include allowing more US investment in broadcasting; ensuring common sense postal reform to allow continued competition from express delivery companies, like UPS; creating and enforcing clear, consistent, and transparent laws and regulations; reducing bureaucracy; and eliminating non-tariff barriers to trade in areas such as medical devices."

Mr Lavin, who will be a part of the delegation, stated, "We currently have 227 business leaders representing 175 companies participating on the trip."

"Raising or eliminating foreign equity caps in the financial services, banking and insurance sectors will allow capital to flow into the areas where it is needed the most. Right now investment caps are prohibitively low. For example in insurance, it is 26 per cent and foreign companies are completely prohibited from participating in the pension sector," he stated.

He also called for creation and enforcement of clearly defined laws that protect the rights of patent and copyright holders. "What I would like to see is for every Indian company to have access to the American market and for every American company to have access to Indian consumers," he stated.

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