Trade between the two countries also saw a significant jump in the first half of 2021.
Following the first face-to-face meeting between Prime Minister Narendra Modi and US President Joe Biden at the White House last week, the two countries presented an ambitious bilateral agenda including pandemic preparedness and security in the region indo-pacific.
In October, the two countries will co-host the Indo-Pacific Business Forum, which will bring together government and industry leaders from across the Indo-Pacific.
Trade between the two countries also saw a significant jump in the first half of 2021. US exports to India grew 25% while imports from India grew 40% annually. At the next Trade Policy Forum, the two countries will also seek to address existing trade concerns. The United States and India, through the United States-India Strategic Partnership Forum (USISPF), also announced the launch of a higher education initiative as well as the alliance for the economic empowerment of women.
In the wake of these developments, the US-India Strategic Partnership Forum is set to begin its 4th Annual Leadership Summit. The forum will bring together government and industry leaders with the aim of expanding the bilateral agenda between the two countries.
In an interview with Shereen Bhan of CNBC-TV18, John Chambers, President of the USISPF, said that the Indo-American relationship is emerging as the most strategic business, government and citizen relationship in the world.
“We stressed almost 5 years ago that the relationship between the United States and India could be the most strategic in the world. the 50 states of the United States. It will be an example for all other relationships in the world and everything that comes true. From a business perspective, you start to watch our startup venturing into India or Indian startups in the United States, the activity is increasing dramatically. There is a shared vision of what is possible, from cooperation on COVID and challenges to how to do business in a way that benefits every citizen and every country. “
Punit Renjen, CEO of Deloitte, believes that India has a great opportunity to generate around $ 1 trillion from the relocation of supply chains.
“I think this is a great opportunity for India to build around $ 1 trillion out of $ 5,000 billion through supply chain outsourcing. Offshoring supply chains for business is not only a risk mitigation strategy, but India owes the inherent benefits that exist in India. We mentioned the startups, the talent that exists, the internal market that exists, and therefore the opportunity not only to be a hub for supply chains, but to serve the internal market is a really important aspect. this is a great opportunity for India. “
According to Renjen, India can take the lead in tackling the climate problem.
“The climate issue is an issue where India can take the lead. Nature-based solutions will solve the climate crisis first before technologies are brought online. India is in an excellent position to address some of the nature-related issues that plague us all. “
USISPF President Mukesh Aghi believes India could be a big beneficiary of the China + strategy of companies around the world. He also added that the Indian government’s decision to change the retrospective tax law has sent a positive signal to the investment community.
“I would like to commend the Indian government for changing the retrospective tax. This has sent a very positive signal to the investment community that India will not revert to the retroactive tax itself. From an FDI perspective, our estimate shows that if India is going to be a $ 5,000 billion economy, then it needs an average of $ 100 billion investment on an annual basis over the past 10 coming years.”
Rajesh Subramaniam, President and COO of FedEx Corporation, said, “We are very bullish on India. The domestic market is very large and we have just entered into a capital and commercial partnership with one of the startups that is growing so rapidly – Delhivery and we believe there is a win-win solution out there. Of course, there are people-to-people, government-to-government, and business-to-business relationships being built, but the business opportunity here is almost 5 times what it is today. As a manufacturing sector in India is developing, then there is an opportunity to build the logistics infrastructure to support the manufacturing sector. Today, the cost of logistics in the Indian economy is around 14%, in the United States it is 8%, so there is a significant opportunity to streamline logistics. manufacturing and logistics should go hand in hand and really expand the US-India trade relationship to a whole new level. “
Watch the video for the full discussion.
(Edited by : Aditi Gautam)
First publication: STI