India should open up more to U.S. business
Wednesday, 07 May 2003, 19:30 IST
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WASHINGTON: A leading congressman who has just returned from a trip to India believes that country should open up much more to American investment. Rep. Joseph Crowley said this at a meeting Tuesday with businessmen, mostly Indian Americans, in Jackson Heights, New York. "India needs to open up its markets to U.S. investment by allowing greater ownership and reduce some of its trade barriers," said Crowley, a Democrat from Jackson Heights and co-chair of the Congressional Caucus on India. Crowley said the current trade imbalance, according to the U.S. Trade Representative, is $4 billion of export from the U.S. to India versus $12 billion of import to the U.S. from India. To reduce some of the trade imbalance, Crowley suggested raising the present 26 percent cap on American investment in companies operating in India to 51 percent. "To allow more investment in U.S. firms is a win-win for the economy of India and for American business in India. More investment means more jobs in India, in their homeland. At the same time we will derive benefits for American corporations," said Crowley. Crowley said he had discussed some of the issues with Indian businesspeople, especially in the computer and IT sector, and American business people in India. He met officials of a number of U.S. financial service companies including MetLife, AIG Group, New York Life, Citibank, Morgan Stanley and American Express. He also met with Nasdaq on investment opportunities for Americans, according to a news report in the New York Daily News. Many, he felt, were interested in allowing larger ownership and reducing trade barriers between the U.S. and India. Shiv Dass, president of the Jackson Heights Merchants Association, an organisation with 220 members, said after September 11, and after the war, business has been down 20 percent and many of his members are afraid because they cannot afford their rents, the Daily report said. "If the economy in the U.S. is good, our business here improves, so all the members are supportive of American investors in India," said Dass. Crowley also cited the need for Indians who live in America to get more involved with the businesses in India, which could help increase trade and economic development. During his four-day trip, he also visited the U.S. consulate's visa division to learn about the visa processing system. He also met with many Indian officials and U.S. Ambassador to India Robert Blackwill to discuss some issues facing India, including Kashmir and tensions with Pakistan.
Source: IANS
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