Tarun Das and Amit Mitra, chief protagonists and faces of the Confederation of Indian Industry and the Federation of Indian Chambers of Commerce and Industry, respectively, asserted that when it comes to US-India trade and investment today, "its a totally new ball-game," and the old talk and India-bashing over outsourcing were long gone.
Das and Mitra accompanied the corporate honchos who visited Washington to coincide with Prime Minister Manmohan Singh's state visit at the invitation of US President Barack Obama.
Soon after Singh in a major speech to the US Chamber of Commerce and the US-India Business Council had declared that India was committed to undertaking further economic reforms, Das told rediff.com that "We are solid, and what we are now looking for is a steady explosion of economic cooperation between India and the US."
He pointed out that "we signed eight MoUs ," and predicted, "by next year it will be 80-just add a zero."
Das said, "We are seeing a new momentum happening and the Indian economy is steady. So, it's not about outsourcing to India anymore. It's about our buying from America. Our investing in America and in joint ventures."
"So, the ball game is a little different now. The goal posts have shifted from the old days of just looking at orders for India and maybe now, we can help a little bit to revive the US economy," he said.
Das said that "we've already been doing it. FDI (foreign direct investment) flows are not just balanced, in fact, it's a little more on the Indian side, creating jobs in America."
He expressed total confidence that all of the MOUs facilitated by the CII would be implemented. "Absolutely, because these are corporate MoUs for actual contracts."
Das said, "Just imagine, Infosys signed a contract for over $30 million for work here in the US. You know Infosys is a company you think of as taking away jobs- outsourcing. But, here they are placing orders for over $30 million from the US."
"HCL have placed another major order with Cisco for security equipment, security technology. So, it's a different ball game completely," he reiterated.
Asked if there were nagging concerns that the US may resort to some sort of protectionism since unemployment-- despite projections that the recession has ended-- is still extremely high and almost touching 10 percent, Das said, "Not really, where we are coming from."
"This is all peripheral stuff and so we are not seeing any of that," he said.
Das said that "what we need from the Obama Administration, and of course our side too, is a signal to the bureaucracies that it's all systems go- that's all."
"We don't need detail, we don't need contracts. What we need are the clear signals that we are together- that we are going to do more stuff together and let's do it."
From the perspective of someone who has seen the Indo-US trade and commerce evolving over the past three decades, being a regular visitor to the US, Das said there was no denying that "there's indeed a kind of dynamism that's on a fast track."
"You look at the US companies coming to India. Big time. It's like a flood. And, the flood is both ways now. Indians companies are also flooding into the US."
Thus, Das argued that "we are now getting into a new high with each other and these are the two markets and the businessmen who are comfortable with each other."
He said that "if it wasn't for the global downturn, which has brought our business down, in the last year, I think we are looking at $100 billion very soon together."
Das said that despite the global downturn, there are scores of Fortune 500 companies in India, and he expressed confidence that several American companies would also now on the assurances provided by the Prime Minister, come to India to invest in infrastructure development.
"With Kamal Nath there as Minister for Highways and Roads, it's already happening," he said. "We are going to see a multiplication of our infrastructure construction work."
Das said, "Just imagine, what a huge opportunity it is for companies like Caterpillar-equipment, construction work, financing, all of it. And US business is now getting there, and most importantly for America, it's big time."
Mitra talking about the MoUs that FICCI signed, said, "It's all connected to technology innovation and incubation. That is all America has."
"It doesn't produce televisions, it doesn't produce cars of any significance. What it does- it produces knowledge," he said. "So, it's a shift from the uranium to the grey matter- that's what America has and that's what we have to be partners in."
Mitra said that all of the MoUs signed "relate to technology transfer, and just think, the DRDO (Defence Research and Development Organisation), the most secretive organisation, has given FICCI 200 technologies to commercialize. And, who are we doing it with? The University of Texas at Austin."
He argued that it's time for India, which was not dealt as severe an economic blow as the US and some of its European allies, "to make sure that there are some deliverables to India if it wants to play ball."
"Obama has to give us lowered export denial regimes, or will it continue with the 10 out of 16 rubrics of technologies that they deny us, when they deny their partners, Slovakia, Slovenia only four."
Mitra said, "So, the question is, are we going to lower technology denial regimes, are we going to get knowledge collaboration in agriculture, in science and technology, will they facilitate a second green revolution?"
Also lauding the Prime Minister's assurances to American business and investors of India's commitment to reform, Mitra said protectionism that could be a damper for Indian business was unlikely. "My own sense is now that the American economy has grown to 3.4 percent rate growth in the last quarter, hopefully, the protectionist energies will be restrained."
"But, we have to take measures to make sure that if it does happen, there should be a dialogue between the two governments at the highest level," he said, but reiterated, "I don't believe these protectionist tendencies will arise."
Mitra said that it's time for US businesses to stop whining that India was not opening up enough sectors and was too enmeshed in all kinds of regulations, when the US seemingly was more restrictive.
"I'll give you one example," he said. "In the case of services, they are pushing us to open our banking sector. Citibank in India has over 40 branches, 127 micro-finance centers. But we have only two branches of State Bank, one branch of ICICI. Thirty-seven states of the United States don't allow insurance investments, whereas every major insurance company in the United States has invested in India."
Mitra argued, "So, what we need is better treatment, particularly because we at FICCI have in fact been going to bat for the US and telling Indian business what an advantage it is for Indian companies to partner with American companies and invest here in the US." So, there's FDI flowing here now and thousands of jobs being created.
