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Speaking at an interactive meeting with the Asia Society in New York today, Shri Kamal Nath, Minister of Commerce & Industry, stated that wooing foreign direct investment (FDI) was an integral part of the economic strategy of both the central and the state governments in India. “What is important is that India has an open system with social and political safety valves, and a regulatory environment that provides comfort, long-term stability and security to the foreign investor”, he said.
Shri Kamal Nath also quoted the Chief Minister of West Bengal, Shri Buddhadeb Bhattacharjee, as saying in an interview to a business magazine: “We must come face to face with reality…. We have to attract more funds, more foreign funds….. foreigners could come here. They are not coming here for charity. They will earn profit and create job opportunities. That is the mutual interest”. After these words of the Chief Minister of West Bengal, the Indian State with the longest surviving Communist Government, “you can make some estimate of the economic climate in India and our responsiveness to foreign investment”, Shri Kamal Nath added.
The Minister said that if he were to describe the Indian economy of today in just three objectives, he would put it as “India: the Fastest-Growing Free-Market Democracy”. He also took the opportunity to correct the misconception that India today was lagging behind in manufacturing skills while excelling only in services and business process outsourcing. “In sectors like auto-components, chemicals, apparels, pharmaceuticals and jewellery we can match the best in the world. We have the skills, we have the positive environment and attitude. All we want is investment and better technology. Today few other countries have embraced foreign technology and management best-practices with as much enthusiasm as has India”, Shri Kamal Nath added.
He reiterated that Indo-US partnership could be constructed on the following five pillars: a strategic partnership covering not only peace and security, but close trade and commercial ties; a conducive policy environment to leverage the inherent strengths of each others socio-economic systems; building stronger physical and virtual networks; integrating of markets and nurturing shared values as two of the world’s strongest and largest democracies.
Indo-US trade crosses US $ 19 billion
Meanwhile, according to the latest data from the Directorate General of Commercial Intelligence & Statistics (DGCI&S), two-way trade between India and United States has crossed US $ 19 billion in 2004-05 registering a growth of nearly 20% over the preceding financial year 2003-04. India’s exports to the US in 2004-05 are estimated at US $ 13265.60 million (i.e. $ 13.2 billion), showing a growth of 15.45% over the previous year, while India’s imports from the US are valued at US $ 6291.49 million (i.e. $ 6.2 billion), showing a growth of 24.96% over the previous year 2003-04. Thus, India has a trade surplus with the US in 2004-05 to the tune of US $ 6974 million (i.e. $ 6.9 billion).
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