Narendra Modi government Outpaces China in US Investments

By siliconindia | Wednesday, 06 April 2016, 06:31 Hrs

BENGALURU: Word has come in from the Barack Obama administration stating that since the advent of the Modi government in the country, the United States has stepped up investment in India. The administration also stated that US investments in India has outpaced that of China reports Dipan Roy Chaudhury of ET Bureau! Now, that’s something!

When asked about the content of these high-level engagements, US Assistant Secretary of State Nisha Desai Biswal stated that the engagements will comprise of six investments at the leader-level, which will include the Nuclear Security Summit too. Biswal outlined the policies and priorities of US in South and Central Asia for the year 2016. She also stated that there has been a dramatic rise of US investment in India and has definitely surpassed US investment in China. The main reason behind this rise, she stated was the focus that has been put in the recent years on economic partnership despite the challenges. Biswal also referred to the potential that Indo-US business ties showed by stating that US have made an elevation in commercial relationship with India by the strategic and commercial dialogue inauguration and CEO Forum revitalization.

There have been some major success for US while trading in the South Asian market and this has created opportunities for even stronger investment and trade ties. There is a huge economic resurgence underway in India stated Biswal and that has made India into the biggest market to invest. Some data was recently released by US-India Business Council that showed that in the past year and a half, over $15 billion has been invested by 30 American companies. The data also confirms that $27 billion worth of deals is expected to be invested by 50 US firms in the near future. Another report about American investments came out from the US Bureau of Economic Analysis release which showed that about $28 billion of American investment came to India in the year 2014. Although, official statistics of India shows that inflows from the US was worth $13.19 billion from April 2000 to September 2014, but it still means that six per cent of the total FDI inflows have come into India which makes US the sixth largest source of foreign direct investment.

Reports say that many aspects of an India-US Investment initiative was decided during Prime Minister Modi's visit to the US in September 2014. These aspects included FDI facilitation, investing in portfolios, developing the capital market, and infrastructure financing. According to reports, a US-India Infrastructure Collaboration Platform was also discussed during this visit which involved developing Indian infrastructure by deploying cutting edge US technologies. However, the note which was published recently by America only talks about the way in which America will be focusing on India not only in economic terms but other terms too. Biswal mentioned that the US will be engaging in an unprecedented cooperation with India by partnering on the grounds of maritime security in the Indian Ocean Region amid China's growing aggression. US will emerge into the largest maritime power for India said Biswal.

Biswal asserted the need of maritime security in the Indian Ocean by stating that the average number of ships in the Bay of Bengal and the Arabian Sea increased by more than 300 per cent and there is a need of security. She also stated that 90 per cent of global trade uses the Indian Ocean as the super-highway and relies on maritime shipping.

Over the last decade the defense trade of India with US has substantially increased and sits at $14 billion which was $300 million only a decade ago. Biswal also mentioned that this initiative will also mean that US would be working with India on its indigenous aircraft carrier development programme. This is the first time that US have taken an initiative like this. Indicating joint patrolling possibility in the near future, Biswal said that US hopes that a day will come when Indian and US navies will ensure that any nation can navigate freely though the sea.