The U.S.-India Economic Dialogue

In July 2005, President Bush and Prime Minister Manmohan Singh agreed to revitalize the U.S.-India Economic Dialogue, giving a major boost to bilateral economic engagement in a wide range of areas. With two-way trade growing at over 20 percent annually, the U.S.-India relationship is increasingly broad, complex and complimentary. The Economic Dialogue provides regular channels to resolve outstanding economic issues, address legacy commercial disputes, develop capacity building and technical assistance programs, and boost bilateral trade and investment. Economic Dialogue working groups have met and corresponded regularly since July 2005.

The Economic Dialogue has four tracks: the Trade Policy Forum, a cabinet level dialogue launched in July of 2005, the Financial and Economic Forum, the Environment Dialogue and the Commercial Dialogue. In July, three new initiatives were launched – the Information and Communications Technology Working Group (ICTWG), the CEO Forum, and the U.S.-India Agriculture Knowledge Initiative (AKI) – and the High Technology Cooperation Group (HTCG) was re-energized. The U.S. and India also established a separate Energy Dialogue to further cooperation on a broad range of energy-related issues.

On March 1, 2006, the Co-conveners of the Economic Dialogue, Assistant to the President for Economic Policy and Director of the National Economic Council Allan Hubbard (U.S.) and Deputy, Planning Commission Dr. Montek Singh Ahluwalia (India), together with U.S. Trade Representative Rob Portman and Commerce Minister Kamal Nath, the Co-Chairs of the Trade Policy Forum, and Undersecretary of State Josette Sheeran Shiner and Foreign Secretary Shyam Saran, the Executive Secretaries of the Economic Dialogue, met to review the Dialogue’s progress and discuss next steps to further enhance our economic relationship. In particular, Undersecretary Shiner and Secretary Saran will host a High-Level Public-Private Investment Summit in 2006 to advance the Dialogue’s economic and commercial goals.

The CEO Forum, established in July 2005 as a high-level private sector forum to exchange business community views on key economic priorities, presented its recommendations to President Bush and Prime Minister Singh on March 2. Mr. Hubbard, Dr. Ahluwalia and other senior officials from both governments also met with members of the CEO Forum to discuss the Forum’s policy recommendations. Membership of the CEO Forum consists of ten chief executives from each country, representing a cross-section of industrial sectors. The CEO Forum’s recommendations cover the breadth of the U.S.-India economic relationship, and aim to enhance economic growth and job creation for both countries, to improve market access for goods and services, and to promote bilateral trade and investment. The U.S. and Indian governments welcome the recommendations, and will continue working with the CEO Forum members to address the issues they have raised in the coming months.