US has reiterated its commitment to investment in India, stating that it remains undeterred despite the bad press over the Commonwealth Games fiasco. Visiting US under secretary of commerce for international trade Francisco Sanchez said that the CWG mess will not affect US investment in any way here on Wednesday.
“No, absolutely not, it will not affect investments from the American companies in India,” Sanchez said, clearing apprehensions of a thinning of US investment after unflattering images of India's Games preparation were beamed around the world over the last few months. Think tanks maintain that India's image will affect her ability to attract foreign investment in future.
He added, “In any relationship or particular situation, there would be challenges and what US can offer is the great expertise, great technology and allow different infrastructure projects in cities and provinces around India, which US is looking at.”
Sanchez’s comments came after last week global rating agency Moody hinted at a beaten image of India with the extensive media coverage of the inadequate preparations for the Games. “Concerns regarding safety, security and site-preparedness are tarnishing the country’s global image...India’s reputation as a tourist and investment destination could be damaged,” the report said.
“I think we can be flip-partners in helping India to move forward. I would not hesitate to encourage American companies to look at the opportunities here,” Sanchez commented.
US is also planning to go big with its investments in smaller cities - mainly tier-II and tier-III Indian cities. Emerging metros like Pune, Nagpur and Amritsar have become important for US companies - mostly from the IT and ITES perspective.
Sanchez also said that India is an exciting market with a huge potential for job creation and huge market for talent. India’s growing metros are critical to strengthening relations between two countries, Sanchez opined. “The Obama administration is setting a goal to double exports in five years as part its National Export Initiative, and India offers huge opportunities as one of the most promising global markets,” the undersecretary said.
He said that according to estimates, 68 Indian cities would have population of more than one million with average household incomes in urban areas topping four trillion dollars in the next two decades.
“India’s growing population will continue to contribute to an urbanisation that has led to significant gaps between current infrastructure capacity and actual needs – disparities that the US can help remedy,” he said.
Sanchez, however, sidestepped questions on outsourcing controversy in the US. “The key is not to focus on any one specific conflict issues but how we can manage it and how we take advantage of opportunities.”
The US Senate on Tuesday blocked the passage of an anti-offshoring bill that would have denied tax breaks to US companies which move jobs overseas.
On his visit to India, Sanchez also met commerce secretary and chairman of the US-India Commercial Dialogue Rahul Khullar in New Delhi.
His India’s visit is in a run-up to the high-level meetings between the leadership of the two nations. This month officials from both countries met in New Delhi and Washington DC to formulate the agenda for US President Barack Obama November’s trip to India.
Obama is likely to visit India during November 9-11.
