ENERGY SECTOR IN INDIA TO GET A BOOST
By K.R. Sudhaman
As India and United States went into nitty grittys to push bilateral trade five fold to $500 billion in the next five years, Indian trade and industry minister Nirmala Sitharaman highlighted the steps taken by New Delhi to improve ease of doing business, a major concern voiced by Washington in stepping up US investment for mutual benefit.
Sitharaman was however candid in pointing out that if United States had concerns on market access Indian companies too had similar market access concerns in agriculture, processed foods and pharmaceuticals that needed to be ironed out. Her forthright assertion made US side agree to look into India’s concern.
The incongruity in US visa regime was yet another thorny issue that hindered promoting bilateral economic cooperation, Sitharaman saidThese issues came up at newly reconstituted India-U.S. Strategic and Commercial Dialogue which was launched in Washington on Tuesday, amidst a sharp exchange of criticisms between Indian Minister of State (Independent Charge) for Commerce and Industry Nirmala Sitharaman and U.S. Secretary of Commerce Penny Pritzker.
US Secretary of State John Kerry and External Affairs Minister, who co chaired, highlighted the priority areas in bilateral ties. A significant aspect of strategic dialogue was the decision to further cooperate in counter-terrorism activities.”This is a very busy time for India and US relations. Its important that we set timelines to achieve our targets,” she said, thanking Kerry for very fruitful discussions between the two countries ahead of Prime Minister Modi’s visit to the US in the next few days.
India’s energy minister Piyush Goyal, who also attended the meeting, said US would start LNG supply to India from 2017, providing much needed relief. Due to short supply of natural gas in India, several gas based power plants and fertiliser plants, though ready have not been commissioned. Eighty per cent of India’s petroleum requirements were imported. The two countries have also agreed to further cooperate in Shale oil and gas exploration on which United States had tremendous expertise.With both countries pursuing green energy, Goyal pointed out that India has scaled up its renewable energy target to 1.75 lakh MW of new capacity addition by 2022. Of this Solar power will account for one lakh mw, wind energy 60,000 mw and the remaining small hydel and biomass power generation. These involve and investment of $175 billion and offered great opportunity for US companies to invest in India.Elaborating on the thorny issues Sitharaman said India needed a clearer “understanding of the U.S. commercial law regime with respect to insolvency and contract enforcement….We understand and appreciate U.S. concerns on market access, but a similar acknowledgment and appreciation of India’s market concerns on agriculture, processed foods, pharmaceuticals and… textiles, must also garner similar attention from your side to enable us to better appreciate reciprocal dialogues and fair and balanced outcomes for both countries.”
“On totalisation we expect to see a much better response on our longstanding demand for an expeditious conclusion of the totalisation and social security [issue with the U.S.], which we are unable to conclude simply because of an incongruency social security regimes in the U.S., which surely calls for a reconsideration.”Earlier setting the tone for a dialogue U.S. Secretary of State John Kerry said “In today’s era foreign policy is economic policy and economic policy is foreign policy,” adding generous words of praise for India’s growing world in global affairs, especially its rescue efforts in Yemen, which had saved the lives of numerous American citizens.India’s External Affairs Sushma Swaraj similarly echoed positive sentiments regarding the expanding scope of bilateral cooperation which, she said, now extended economic engagement into the realms of “investments in technology, defence and security cooperation… civil nuclear cooperation, science and technology, air and space, energy and trade.”
Kerry said the two sides had “a very robust discussion regarding counter-terrorism, the Indian Ocean, maritime security, South China Sea, the South Asian challenges of the moment, as well as our challenges on a global basis for nuclear non-proliferation and climate change.”Kerry described India has one of the “most important partners in the world, the largest democracy in the world. Together we’re the oldest and one of great common values and common commitment to the fraternity. And I think we have plans to advance our relationship to a USD 500 billion goal of economic exchange.”
Ease of doing business is key to boosting Indo-US bilateral trade and achieving the goal of increasing it to USD 500 billion, US Commerce Secretary Penny Pritzker said. But at the US-India Business Council meeting, several US participants did admit that there were action on part of Modi government on several issues raised by them eight months ago. But at the same time they expected more action on this front in the coming months and years. The list given by them is no different from what was provided to the Indian government in the past but the difference is there is not some tangible action on the part of Indian government.
Trade ties between India and the US have never been better and the two-way commerce has nearly tripled in recent years with India becoming the fifth fastest source if FDI to America.”The (Narendra) Modi Government has streamlined bureaucratic decision making processes, raised Foreign Direct Investment limit in insurance, defense and railroad infrastructure and establish commercial court that speed up the resolution of business disputes,” Pritzker said, adding that the US commends Modi and his team for this progress.The US-India CEO Forum has come out with 17 recommendations They pertain to ease of doing business, infrastructure development, innovation and entrepreneurship, standards and global supply chain. (IPA Service)