Indian, US firms may sign pacts to set up electronic clusters

Indian and American companies are expected to sign agreements during the forthcoming visit of US President Barack Obama for setting up electronic clusters and developing smart cities. Several pacts and joint ventures are likely to be inked to increase economic cooperation between Indian and US companies in the presence of the President, sources said.

Besides, during the India-US CEO's forum meeting on January 26, both the sides would deliberate upon several issues including totalisation agreement, visa related problems, mandatory local content requirement and ways to fund development of infrastructure in India, they said.

The US President is coming on January 25th and he will be the chief guest at the Republic day celebrations here.

He is expected to address the CEO's forum meeting. Setting up of electronic clusters by the private sector firms of both the countries would help India in reducing its import bill of electronic goods, which has increased 23 per cent to $3.14 billion in December 2014. "It would also help in boosting exports of electronic goods and manufacturing," they added.

According to industry experts, India’s electronic imports may surpass its oil import bill by 2030. The annual imports are at over $35 billion.

As regards smart cities, the government is proposing to set up 100 smart cities in the country which requires smart lighting solutions, among others.

The concept of 'smart cities' as satellite towns of larger ones was enunciated in budget last year by the government which has allocated Rs 7,060 crore for the ambitious plan.

India has received  $1.35 billion foreign direct investment from the US during April-November 2014 as compared to $806 million in 2013-14