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CEOs' delegation for US to tap business opportunities

A series of meetings with economic think tanks, key government department officials, Congressmen and industry would mark the visit of CII president Sanjiv Goenka and a CEOs' delegation to the US from June 6 to June 8.

The delegation includes Arun Bharat Ram, vice-chairman SRF Ltd; Subroto Bagchi, president (Americas), Mind Tree Consulting; Y C Deveshwar, chairman, ITC; Jagdish Khattar, managing director, Maruti Udyog Ltd; and Tarun Das, director general, CII and chairman of ACC Ltd.

Although business delegations to the US have been a common feature over the years, this visit comes at an important juncture.

On the one hand is the increasing importance being accorded to economic ties, spanning trade and investments, with India and on the other are the prospects of a slowdown in the US economy.

On the bilateral trade front the slow decline in merchandise trade between the US and India witnessed in the first quarter would be a key issue in the discussions with both industry as well as government officials.

There is a perception in US industry, strengthened by the recent widening of trade balance from $5.4 billion in 1999 to $7.0 billion in 2000 in India's favour, that the Indian market is restrictive and regulated.

Dispelling this perception as well as apprising industry and policy makers of the increasingly liberal trade and investment policy environment would be on the delegation's agenda.

The delegation is also scheduled to meet senior members of the International Finance Corporation; Export Import Bank of the US; among others to explore innovative tools for facilitating Indo-US trade.

The prospects for investments on the hand are expected to improve significantly as the US Department of Commerce in its 'Country Commercial Guide for the Financial Year 2001 for India' has viewed India's economy as fundamentally sound, especially with the emergence of "new economy" sectors.

The 15 industry sectors identified for potential investments in India for US firms include computer software and services; telecommunication services; telecom equipment; computers and peripherals; pollution control equipment; oil and gas machinery; medical equipment; chemicals and petrochemicals; food processing and packaging equipment; biotechnology; power transmission and distribution systems; airport and ground support equipment; water resources; air-conditioning and refrigeration equipment; and agricultural chemicals.

At the meetings with Indian entrepreneurs in the technology sector, on the other hand, the delegation would try to gauge the current trends and the need for aggressively marketing India as an outsourcing destination.

The objective would be to evolve mutually beneficial strategies for the information technology sector.

To get an objective perspective on India's economic prospects and business opportunities, CII and Brookings Institute are jointly organising a panel discussion on 'Prospects for, and implications of, rapid economic growth in India' during the US mission.

With the new Bush administration in office, CII's CEOs' mission assumes greater significance. The meetings with key US government officials in the new administration, members of the US Congress, Senate and US Business would cover broader economic issues.

According to CII, a key issue for the Bush administration is to consider lifting of sanctions imposed on India. The US Congress is in the process of considering a bill, introduced by the co-chairs of the Congressional Caucus on India and India Americans - Representatives Ed Royce and Jim McDermott, which would lift sanctions on India.

CII is hopeful that this bill would soon see the light of day and sanctions would be lifted. The CEOs' delegation is scheduled to meet Royce, McDermott and other members of the Congressional Caucus.

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