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Indo-US dialogue to focus on investment links

Our Bureau

NEW DELHI, Sept. 13

THE Indo-US Commercial Dialogue being organised on September 14 in Washington D.C. will focus on strengthening bilateral trade and investment links between the two countries.

In a statement, the Confederation of Indian Industry (CII) said the highlight of the dialogue would be the keynote address by the Secretary, US Department of Commerce, Mr Norman Mineta, and the Indian Finance Minister, Mr Yashwant Sinha.

The statement added that many sectors such as drugs and pharmaceuticals, power, fuel supply and telecom had been identified as sectors with great opportunities for the US investor. The chamber targeted a foreign direct investment flow of $ 15 billion fro m the US alone within the next five years. On the trade front, CII expected that exports to US to increase to $ 15 billion by 2005.

The financial sector has emerged as a major area for cooperation between the two countries. The opening of the insurance sector has already led to a number of US companies setting up operations in India.

The chamber expressed the hope that many more would follow soon. Other areas which hold promise include investment in Euro issues/mutual funds floated overseas, broking business, setting up asset management companies/ merchant banking companies as well a s in certain NBFC activities.

The recent policy initiatives in the telecom sector such as the opening of national long distance telecom and the relaxation of FDI norms, were also expected to throw up a number of opportunities for US investors to participate in this sector.

Another area which held a lot of potential was pharmaceuticals and biotechnology, CII said.