Talk on ‘US-India Economic Ties: The Next Ten Years’ at ICFAI, Hyderabad

 

 

Mr. Richard M Rossow, Senior Fellow at the Centre for Strategic and International Studies (CSIS), Washington DC during a session at ICFAI University, Hyderabad on December 10, 2014 said that the economic tie between the two countries (USA and India) is to go much farther in coming years.

 

It was an intensive talk conducted by ICFAI University, Hyderabad on ‘US-India Economic Ties: The Next Ten Years’.

 

With further simplification of investment policies India has been considered as an attractive destination for American investors and this is a good sign, he believes. Mr. Richard indicated three areas which are likely to see significant growth in US-India partnership are Civil Aviation, Defence and Insurance Sectors, which were, incidentally, opened up for Foreign Direct Investment recently.

 

 

 

 

Mr. Rossow interacting with students

 

 

Mr. Rossow pointed out that when it comes to India-US relations, there seems to be great bi-partisan clarity and optimism all around. On the one hand, American investors want to be part of the Indian growth story and on the other, American strategic interests are aligned with the interests of a democratic India in Asia. The roll out of Goods and Service Tax, simplifying of labor laws and reforms in land acquisition policies are three significant developments that global investors are awaiting in India. Anything else that improves the ease of doing business in India would significantly advance the economic ties between the two nations.

 

 

 

 

Mr. Rossow interacting with faculties

 

According to Mr. Rossow, there are potential downsides to this overwhelmingly optimistic story. As US-India trade grows, the size of US-India trade imbalance and the negative trade gap the US has with India will come into focus. This could potentially dampen the enthusiasm of some in Washington. Similarly, while a lot is expected from the new government, any inability to move forward with much-awaited reforms could also become a dampener. Specifically, while India-watchers are aware of the challenges in moving key legislation through Rajya Sabha at this point of time, the investor community at large still has placed great hopes on significant progress in the economic environment here. Any disappointment on that front could again slow down the deepening of economic ties between the two nations.

 

 

Prof. J. Mahender Reddy, the Vice-Chancellor of the ICFAI University, presided over the session and attended by students, faculty and research scholars of the University. The event was also webcasted live to all the 11 Universities and 6 IBS campuses of the ICFAI Group.

 

 

ICFAI University all India Campuses