Prime Minister Narendra Modi’s visit to the US is expected to be a watershed in India-US relations. This is driven by the growing perception of Modi as the man who can steer India to higher levels of growth, usher stability in policies, ensure best business practices and optimise investment in India through development of infrastructure. The US also sees this as an opportunity to partner India in its endeavour to achieve higher levels of growth and development.

The economic and business relationship between India and the US has been one of the stimulants. Total bilateral trade touched $100 billion in 2013 and the US is keen to take this to $500 billion. Bilateral cooperation has broadened significantly, covering trade and investment, defence and security, education, science and technology, cyber security, high-technology, civil nuclear energy, space technology and applications, clean energy, environment, agriculture and health. Cross-border investments are growing and Indian firms have created close to 100,000 jobs in the US.

However, the full potential of this economic engagement remains untapped. The two countries can script a new chapter of engagement based on mutual trust and understanding. Let me outline a few potential areas.

Where the opportunities lie

Education is one big opportunity. With the Modi Government emphasising education and skill development as the backbone of a vibrant economy, the US can help create quality infrastructure for higher and technical education.

America’s community colleges have set a remarkable standard for 21st century skills training. India and the US can expand educational ties across the board with India opening up to institutes of excellence from the US. These institutes can set up their centres in India for higher education and vocational skills. To create job opportunities, the Government is planning to set up virtual classrooms and online courses for school education and skill development centres under the public-private partnership (PPP) mode. The US could well be a partner in creating this win-win proposition for industry in both countries.

Defence is another potential area for collaboration. India as one of the major arms importers in the world offers the US a lucrative market. With the hike in foreign direct investment limits in India’s defence sector from 26 to 49 per cent, a favourable situation is emerging. India can tap into the expertise of the US to develop its weapon systems. The participation of the private sector, which is keen to partner the government in defence manufacturing, may make technology transfer possible.

Focus on approach

Agriculture and food processing is a huge sector in the US; India needs infrastructure and mechanisation to boost this sector. This will help India in fulfilling its dream of a second green revolution.

With Modi calling for strengthening the manufacturing sector in India, the US can make its presence felt in India through investments in manufacturing. Urban development, especially the idea of 100 smart cities, offers another avenue of partnership. Another area is energy. Modi has called for a focus on renewable energy sources such as solar energy to meet India’s growing energy demand. This can launch a new chapter in the US-India climate change relationship.

The US has the ability to make a difference here by eliminating the barriers that keep the best technology out of the Indian market. The US can also help India find and develop new sources of energy through renewable technologies. Of course, the operationalisation of the civil nuclear deal remains an area of expectation.

There are many potential avenues of collaboration, but what is important is a focused approach which will help India and the US to pool their synergies in a more purposeful manner. Prime Minister Modi’s visit to the US provides an important platform in this respect. It should lead to a comprehensive strategy of economic engagement.

The writer is senior vice-president

of Ficci

Related Topics
comment COMMENT NOW