U.S. says it remains 'absolutely committed' to BIT with India

Washington, Jun 27 (PTI) - Terming the Indo-U.S.
relationship as a major factor for the growth and success of
the global economy, the Washington has said that it remains
"absolutely committed" to a bilateral investment treaty with
New Delhi.

"India-U.S. relations is very important to the growth and
success of the global economy," Under Secretary of Treasury in
charge of International Affairs David McCormick has said.

McCormick, who was speaking at a luncheon meeting hosted
by the U.S. India Business Council for a CEO delegation from
India under the aegis of the Confederation of Indian Industry
led by K.V. Kamath, said:"there are so many dimensions of the
relationship that are so important.. There is much to be
optimistic about."

"The United States remains absolutely committed to a
bilateral investment treaty with India and we appreciate the
response of the Indian government," McCormick said.

The senior Bush administration official stressed the need
for further financial sector liberalisation saying that
opening up will make India better and bring benefit to Indian
business and people.

Speaking before him the former USTR Ambassador Susan
Esserman, currently with Steptoe and Johnson, pointed the
rapid growth in not only trade between India and the U.S. but
also of the "unbelievable growth" in investment.

"Indian companies have made very significant investments..
supporting 30,000 jobs in the U.S.," Esserman said going on to
make the case for the start of formal negotiations between the
two countries on a Bilateral Investment Treaty.

"It is the building block upon which freer trade grows,"
Esserman said making the point that the BIT not only ensures
recourse, arbitration and basic protections but will also help
to level the playing fields".

The former senior official said that India had a bilateral
investment treaty with 61 countries and the United States with
45.

"There is no recession when it comes to U.S.-India
commercial relationship," remarked USIBC President Ron Somers.

"The Bilateral Investment Treaty (BIT) is the next hill to
climb," the top USIBC official said, adding "There is a
tremendous history. Let us keep it going."

The head of the CII delegation Kamath maintained that the
growth story of India continues and there is no indication of
any slowdown.

"What is happening in India is the transformational growth
that have been seen elsewhere," Kamath said referring to parts
of East and South East Asia but pointed out that if in the
other countries the manufacturing sector was the prime driving
force of the growth, in India it was the services sector.

Tracing the rapid growth in the bilateral economic
relations, Kamath said that there is an opportunity today and
that businesses of both India and the United States must seize
upon this for mutual benefit.

"There is a whole range of opportunities in the
private-private route," Kamath said referring to the
opportunities in the rural landscape. "The government will be
a facilitator on both sides," he added.

He maintained that with between eight and ten million
people entering the workforce in India one of the biggest
challenges is that of "skills" to manage the jobs and
relatedly the need to revamp the educational process.

"To me that seems to be the major challenge," he said.
The CEO delegation accompanying Kamath included Gopal
Srinivasan, Chair and MD of TVS Capital Funds Ltd, Ranbaxy
Laboratories Chair Harpal Singh, Financial Technologies CEO
Jignesh Shah, Rajan Navani of Jetline Group and Hari Bhatia,
Co Chair and MD of Jubilant Organosys Ltd.