PM Narendra Modi, President Barack Obama Gun For $500 Bn Trade Target

WASHINGTON: Targeting a five-fold jump in Indo-U.S. trade to $500 billion, Prime Minister Narendra Modi and U.S. President Barack Obama today pledged to deepen economic cooperation and will set up a joint program to boost business investment.

After two days of talks focused on ways to reinvigorate the U.S.-India relationship through economic, energy and security cooperation, the two sides agreed on $1 billion of concessional financial from the U.S. Export-Import Bank for India's renewable energy development agency.

The two leaders, who met for the first time, agreed on boosting two-way trade to $500 billion from $100 billion. However, no deadline was set for reaching that goal.

"President Obama and Prime Minister Modi recognised that U.S. and Indian businesses have a critical role to play in sustainable, inclusive, and job-led growth and development," a joint statement issued after the meeting said.

In order to raise investment by institutional investors and corporate entities, the leaders decided to establish an Indo-U.S. Investment Initiative led by India's Ministry of Finance and U.S. Department of Treasury, with special focus on capital market development and financing of infrastructure.

They also agreed to establish an Infrastructure Collaboration Platform convened by the Ministry of Finance and the Department of Commerce to enhance participation of U.S. companies in infrastructure projects in India.
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