Remarks by U.S. Ambassador Nancy J. Powell at the launch of the ICRIER-Wadhwani Chair in India-U.S. Policy Studies report “BIT and Beyond: Advancing India-U.S. Economic Relations”

New Delhi | January 23, 2013

(As prepared for delivery)

Good evening, everyone.  It is an honor to be here alongside External Affairs Minister Salman Khurshid.  Reports, such as the ones that bring us together tonight, provide invaluable recommendations, analysis, and perspective on the decisions governments make that can help or hurt economic relations.  I would like to congratulate CSIS Washington and ICRIER on these thorough analyses.

All of us in the room tonight have a chance to help shape the future of the U.S.-India relationship.  The year 2013 offers a special window of opportunity.  The U.S. has just concluded an election in which President Obama and his second administration team will be looking to fulfill the pledges that were made during the campaign and complete initiatives begun in the first term.  When he was here in 2010, President Obama said U.S.-India ties are “a defining partnership of the 21st century.”  We can contribute to this important relationship and help to fulfill the commitments both countries have made to invest in our intertwined futures. 

Towards that end, I welcome Ambassador Singh’s recommendations:

- for both countries to exercise flexibility in investment negotiations;
- for continued efforts to further reform the Indian economy in addition to bilateral agreements; and
- his call to look beyond the BIT to conduct a cost-benefit analysis on international trade  agreements outside of the WTO.  These are well-timed. 

Under the U.S.-India Strategic Dialogue, both countries have regular channels to engage on these and many other key drivers of economic growth.  And we need to further strengthen and reinvigorate our efforts through frank discussions of new ideas that lead us to action plans and ultimately to concrete delivery.  Whether it is through partnering in manufacturing to create jobs in both our countries, collaborating more closely on strengthening infrastructure in India, extending regional economic connectivity to third countries both westward and eastward, setting an example globally on energy cooperation, or teaming up to advance innovation through increased protections on intellectual property and greater investments in research; there is much the U.S. and India can and must do together. 

At the close of 2012, my colleague Ambassador Rick Inderfurth celebrated the release of the U.S. counterpart to this report.  Taken together, these reports provide invaluable analysis and recommendations about the path our two governments can consider to further strengthen this already vibrant relationship.  Reports like these are an excellent starting point for thoughtful discussions about practical steps both governments and private sectors can take to bring this relationship to the next level.

Not too long ago, Prime Minister Singh said his government is committed to reviving economic growth.  For this reason, I applaud the recent decisions by the government to offer greater predictability in India’s tax regime and to invite foreign investors into new segments of the Indian economy.  Opening new avenues for companies from both of our countries to exchange ideas, best practices, and grow businesses together will benefit all of us in the long run. 

There are many examples of how this is already happening.  I was just in Guwahati last month, where I inaugurated a new American Business Corner aimed at assisting India’s small- and medium-sized companies connect with U.S. companies.  In Hyderabad, I saw many U.S. and Indian corporations employ thousands of engineers in research and development centers that feed new products and processes that span the globe.  In Chennai, workers from rural households work for U.S. companies such as Caterpillar that make mining and construction equipment to build global infrastructure.

Our state-to-state and local partnerships are an example of this effort.  I’m proud to say our peoples, our cities, and our states are connecting like never before.  For instance on Monday, San Antonio Mayor Julian Castro will bring a delegation of 23 Texas companies and state-level government officials to Delhi on their multi-stop visit to India that also includes Hyderabad and Chennai.  Healthcare, information technology, automotive manufacturers, higher education, among other sectors will be represented in the delegation.  In early February, Governor Jack Markell will bring 15 businesses and government officials to meet with their counterparts in Mumbai, Bangalore, and Delhi to strengthen business ties and promote investment opportunities in Delaware.

Previous visits to India include Maryland Governor Martin O’Malley’s historic trip that created $60 million in two-way business – in infrastructure, technology, education, and security; Kentucky Governor Steve Beshear, whose three trips to India in an effort to promote engagement with states and cities throughout the country yielded Kentucky a $7 billion, 25-year private-sector energy deal; and Virginia continues to sustain nearly $300 million in annual export of goods to India, and has developed many sustainable ties.  In 2010, Norfolk, Virginia, became the first city on the U.S. east coast to have a sister-city alliance with India – through partnership with the city of Kochi in Kerala.

Regional engagement also strengthens small- and medium-sized enterprises (SME) in both countries by syncing sectors and regions.  In India, SMEs contribute to nearly 45 percent of manufacturing output and 40 percent of national exports. The United States SME sector has more than doubled its exports to India in the past decade. 

Ambassador Singh, I applaud the thorough analysis your report provides of the U.S-India trade and investment relationship and detailed outline of India’s present foreign investment policy.  I hope this report and tonight’s event serve to open a fruitful and productive discussion on a path forward.  I urge all partners to take the visionary ideas generated and turn them quickly into practical, concrete action plans.  It will be on this solid footing that we can take steps toward unleashing the true potential in the U.S.-India relationship.

Thank you.