Modi Co-Opts U.S. Business In Remaking India
Over the years, India has lagged behind in exporting value-added manufactured goods. It has not been able to raise its share of techno-intensive products. For example, in comparison to what moves between its neighbour China and the US, India's trade in goods and services with America is miniscule. It reached $93 billion in 2012, which compares poorly to China's $579 billion during that period. Modi's move to boost manufacturing is now expected to see a big jump in Indian exports to the US.
And that explains the strong business content in his foreign policy moves in recent months. The subject figured also in Modi's talks with President Barack Obama and the two leaders pledged to set up an Indo-US investment initiative to raise investment by corporate entities and institutional investors. They agreed to establish an Infrastructure Collaboration Platform to raise participation of US companies in infrastructure projects in India.
The private sector in the US holds huge investible resources. It owns and incubates an array of technologies that are of immense use in India's development process. The Obama administration has welcomed India's offer to the US industry to be the lead partner in developing three smart cities in Ajmer, Allahbad and Visakhapatnam.
