06 November 2010

U.S. and India Will Both Benefit from Increased Trade, Obama Says

President Obama greets audience members at the U.S.-India Business Council and Entrepreneurship Summit November 6.

By Stephen Kaufman
Staff Writer

Washington — President Obama told business leaders from India and the United States that increased bilateral commerce will be a “win-win proposition for both nations” and welcomed India’s rapid economic rise as “one of the most stunning achievements in human history.”

Speaking November 6 at the U.S.-India Business Council and Entrepreneurship Summit in Mumbai, India, Obama said the strengthening ties between their two countries is offering important benefits to both.

“It is a dynamic, two-way relationship that is creating jobs, growth, and higher living standards in both our countries,” he said.

Broad-based economic growth through trade and commerce unleashes “the most powerful force the world has ever known for eradicating poverty and creating opportunity.”   The United States ardently supports India’s rise and wants to increase its investments in the country, he said.

The president announced that more than 20 landmark deals between the two countries had been sealed earlier in the day, totally nearly $10 billion in U.S. exports.

“From medical equipment and helicopters to turbines and mining equipment, American companies stand ready to support India’s growing economy, the needs of your people, and your ability to defend this nation.  And today’s deals will lead to more than 50,000 jobs in the United States,” Obama said.

Entrepreneurs from both countries are also finding new ways to adapt U.S. technology to new uses and business models that benefit the Indian people, he said.

“They’re working together to make cell towers across India that can run on solar, and not diesel.  They’re putting American technology into Indian electric cars.  They’re trying to bring new filtration systems and clean drinking water to rural India; and they're trying to develop better drugs for diseases like malaria,” the president said.

Increased bilateral trade and investment also “means more choices for Indian consumers and more jobs for Indians and Americans,” he said.    

According to a November 6 White House press release, India is “one of the most important and promising emerging markets in the world,” and the International Monetary Fund has predicted that its gross domestic product will grow at an annual rate of more than eight percent through 2015.

The press release said India’s demand for foreign goods has grown significantly since 2002, with merchandise imports quadrupling to reach $257.7 billion in 2009.  The United States currently represents more than 6 percent, or $16.4 billion of India’s import market, making it India’s second-largest import partner after China.

In his remarks, the president said the two countries “can do much better.”  Currently, India is the 12th largest trading partner of the United States, and less than 2 percent of U.S. exports go to India.  “Our entire trade with your country is still less than our trade with the Netherlands … a country with a smaller population than the city of Mumbai,” he said.

“There’s no reason this nation can’t be one of our top trading partners.  And that’s why we want to work together with you to remove the barriers to increased trade and investment between our nations,” Obama said.

(This is a product of the Bureau of International Information Programs, U.S. Department of State. Web site: http://www.america.gov)