CII delegates visit US, search for new opportunities

NEW DELHI: A series of meetings with economic think tanks, key government

department officials, Congressmen and industry representatives would be some of

the key features during the visit of the CII president Sanjiv Goenka’s visit

to the US between June 6 and June 8.

Goenka will be accompanied by several high-profile CEOs to discuss business

and trade related issues. The delegation will include former CII president Arun

Bharat Ram, Subroto Bagchi, vice chairman and president of Americas, Mind Tree

Consulting Pvt. Ltd., Y C Deveshwar, chairman of ITC Ltd., Jagdish Khattar,

managing director of Maruti Udyog Ltd and Tarun Das, director general of CII and

chairman, ACC Ltd.

Though trips to the US by business delegations are a common feature, what

makes this one unique is the timing of the visit. It comes at a time when India

is increasingly receiving global attention in terms of economic ties, spanning

trade and investments, while on the other hand the prospects of a prolonged

slowdown in the US economy is becoming painfully obvious among industry circles.

On the bilateral trade front, the slow decline in merchandise trade between

the US and India witnessed in the first quarter would be one of the key issues

that would be taken up during discussions with industry and government

officials.

There is a perception in US industry, though strengthened by the recent

widening of trade balance from $5.4 billion in 1999 to $7.0 billion in 2000 in

India's favor, that the Indian market is highly restrictive and regulated. The

delegation’s main agenda would include dispelling this perception and

apprising industry and policy makers of the increasingly liberal trade and

highlighting the investment-friendly policies adopted by the country.

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 better Indo-US trade. The prospects of

investments inflow has significantly improved with the US Department of

Commerce, in its 'Country Commercial Guide for the Financial Year 2001 for

India', viewing India's economy as fundamentally sound, especially with the

emergence of "new economy" sectors.

The 15 industry sectors identified for potential investments in India

include: computer software and services, telecommunications services,

telecommunications equipment, computers and peripherals, pollution control

equipment, oil and gas machinery, medical equipment, chemicals and

petrochemicals.

This apart, 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 will also be the major areas of the focus.

At the meetings with Indian entrepreneurs in the technology sector, 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 IT sector.

To get an objective perspective on India's economic prospects and business

opportunities, CII and Brookings Institute will jointly organize a panel

discussion on "Prospects for, and Implications of, Rapid Economic Growth in

India" during the US visit.