Virginia trade mission to explore ties in India

Thursday, 09 September 2004, 19:30 IST
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WASHINGTON: The American state of Virginia is sponsoring a trade mission to India early next year in a bid to explore the possibility of business deals in areas like computers, telecom and education services. The mission comprising business leaders from Virginia is being undertaken by a state agency - the Virginia Economic Development Partnership (VEDP). Though India has become known in recent years as a place where American technology and service firms have gone to outsource jobs, the country's growing wealth also creates opportunities for exports from Virginia, the Partnership says. Led by VEDP director Paul Grossman, the trade mission will visit Mumbai, Chennai and Bangalore between Feb 25 and March 7. Asked why he felt it was time to develop trade relations with India, Grossman said: "We believe that now is the right time to begin educating Virginia businesses about the business opportunities in India. "Our resources only allow us to undertake a limited number of trade missions per year. So, the fact that we are striving to open business doors in India reflects our commitment to that market." Virginia's exports to India in the first five months of 2004 stood at $25 million, a 148 percent increase over the same period in 2003. According to Grossman, "Virginia companies are well positioned to provide products and services to India's expanding IT, textile, automotive and pharmaceutical sectors. Our experience with mining, coal and environmental technologies and manufacturing and textile technologies make Virginia a superior supplier." He said the trade mission will explore possibilities in the areas of telecom equipment, education services, computers and electrical power, pollution control, medical and mining equipment where opportunity exists for the Partnership. He explained that the Partnership does not per se enter into any direct business deals itself. "So the objective of this trip is to introduce Virginia companies that participate in the mission to the appropriate Indian business partner, representative or customer. To that end, we engage a private-sector consultant to set up screened, one-on-one matchmaking meetings between the Virginia and India companies. The success of our Virginia companies is our success," Grossman added. The VEDP works with Virginia companies to export their products and services into markets around the world. Grossman, who has not yet visited India, said he had heard about the "dynamic economic growth of India" from media reports and other accounts. He said the VEDP has been watching the strong economic growth of India for several years. Grossman expressed the hope that Virginia firms will be among the first to benefit from India's significant tariff reductions. New exports of textile floor coverings, furniture and bedding, clocks and watches, and tool cutlery have also been recorded, though at much smaller levels. Industrial machinery takes the second spot and exports have grown a healthy 47 percent. Optical instrumentation, electrical machinery, and pharmaceutical exports have also seen significant gains. Asked about his views on outsourcing, Grossman said: "Outsourcing is a strategic business tool that companies around the world employ to maintain competitive advantages. Ultimately, it is the consumer who benefits as companies are able to offer similar if not value-added products at a lower cost."
Source: IANS
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