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A US-India Partnership for Global Economic Recovery

A US-India Partnership for Global Economic Recovery

Sunil Bharti Mittal, immediate past president of CII, leader of delegation, and chairman and CEO, Bharti Enterprises.

NEW YORK, March, 17, 2009 – With the economy slowing down, India is
anxiously awaiting the national elections in April that will decide who
guides the country through turbulent times. The US already survived a
similar stress-test during the presidential elections last year. But
the world’s two largest democracies share more than just the stage for
political transformation.

In recent years, India and
US have most prominently partnered in innovation; India has catalyzed
technological development in the US by offering skilled labor and IT
solutions. A partnership that was "a distant dream in the 80s" has
grown over the past few years as both countries realize their shared
vision of the future: economic and social stability, tapping
alternative energy, improving public health and combating terrorism, to
name a few. At Asia Society’s headquarters in New York, panelists
discussed the need for deepening existing economic and political ties
between the two countries.

According to the panel, India represents significant market growth opportunities for American businesses. Sunil Bharti Mittal,
chairman and group CEO of Bharti Enterprise, noted that Indian youth,
which account for 55 percent of the total population, are a potential
market for American companies. And while automotive sales are down, the
fast moving consumer goods (FMCG) sector is doing fairly well according
to Vijay K. Thadani, CEO of NIIT Limited. He stressed
the need for the two countries to move towards greater trade
cooperation noting that any protectionist policies, originating from
either country, would not be the answer to financial recovery.

While the upcoming elections in India are cause for uncertainty in the markets, Tarun Das,
chief mentor
confederation of Indian Industry and president, Aspen Institute India,
believes that there will not be a significant change in the top
priorities of the country’s political agenda – development in
infrastructure, insurance, multi-brand retailing, defense and human
capital. C.K. Birla,
chairman of Hindustan Motors Ltd., warned of an initial slowdown in the
implementation of policies but assured that there would not be a
retrograde of initiatives that are already in place to help recover the
economy.

The US India Business Council, Confederation of
Indian Industries and other organization are taking steps to make a
case for a US partnership with India. Frank G. Wisner,
international affairs advisor at Patton Boggs LLP, believes that
India’s proposal will be well received in Washington, noting that there
is no constituency amongst American businesses that is opposed to
having an open trading system and strong relations with India.

Reported by Chandani Punia

March 17, 2009
by Stephanie Valera