Testimonies continue at USITC hearings.
By Deepak Chitnis
WASHINGTON, DC: As the US International Trade Commission (USITC) continues with its public hearings regarding accusations of rampant malpractice within Indian industry, the Confederation of Indian Industry (CII) testified in defense of India, presenting a “strong and reasoned defense of India’s trade, commercial and investment policies.”
The statement to the USITC was presented by Pallavi Shroff, the senior partner of the Amarchand Mangaldas law firm in New Delhi and Mumbai. In a press release distributed Friday, the CII said that their statement “highlighted the exponential growth in the India-US trade relationship,” and that is implored the USITC to see the realities of the US-India relationship and its benefits to both countries.
“From 2005 to 2013, total merchandise trade grew from $26.72 Billion to $63.70 Billion, of which, US merchandise exports to India grew from $7.9 Billion to $21.8 Billion – an impressive jump of 176%,” said the press release. “Total trade in goods [has] also risen, making India the US’s 11th largest merchandise trading partner. US exports to India in services also grew from $10.06 Billion in 2005 to $27.61 Billion in 2011, an increase of nearly 175%.”
CII also pointed to liberalization of India’s FDI [Foreign Direct Investment] scheme, saying that it has expanded FDIs to include “domestic airlines, mass rapid transport, petroleum, financial services, telecommunications, development of townships and housing, construction, hydrocarbons, [and] retail.”
According to their numbers, total FDI between 2002 and 2012 was $164.4 billion, of which about 6%, or $9.87 billion, is the US share.
Independently from the USITC hearings, US-India Business Council (USIBC) President Ron Somers wrote an editorial for political website Roll Call in which he detailed his reasons as to why the US-India relationship is so crucial for the US to maintain, saying that India is the world’s third-largest economy and is recovering quicker than most from the global recession of 2008.
In the piece, entitled “Why It’s Time to Deepen U.S.-India Ties,” Somers says that in addition to the aforementioned reasons, “India’s young population yearns for better governance and greater freedom [,] the Internet has connected our countries as never before and the new U.S.-India knowledge economy is reshaping the commercial as well as cultural landscape.”
Somers also talks about America’s “strong political and strategic ties” with India, specifically in relation to Pakistan, Afghanistan, Iran, Myanmar, and, of course, China.
“Since 2005, U.S. defense sales to India have grown dramatically from nil to more than $12 billion; India now conducts more annual military training exercises with the U.S. than any other country, and high-level dialogues are under way on both national defense and homeland security issues,” he wrote.
He adds that “The growing strategic partnership between our two countries encompasses cooperation in cyber-security, higher education, clean energy, health care, environment, scientific research, space, and many other areas of mutual interest and concern.”
Somers also addresses the issue of immigration reform, saying he hopes the process can “be taken step by step, to include measures to stimulate U.S. economic growth and create jobs for Americans.” He then concludes the piece by beseeching the US and India to “dispense with public displays of acrimony over issues that should be worked through. It is imperative we strengthen our partnership with India, forging trust and creating a beacon of hope and freedom that will light the world for decades to come.”
To contact the author, email to deepakchitnis@americanbazaaronline.com