India-US trade will reach $50 billion this fiscal: Shankar

Wednesday, November 3, 2010

NEW DELHI - Two-way trade between India and the United States is expected to reach $50 billion this fiscal, with investments moving in both directions, India’s Ambassador to the US, Meera Shankar, said here Wednesday.

We are expecting bilateral trade to grow by 30 percent and reach $50 billion by March, said Shankar, releasing a report on Indian investment in US brought out by the Federation of Indian Chamber of Commerce and Industry and Ernst and Young.

She said trade was a key driver in the relationship. If we look at the trade in goods, it is growing on both sides.

Shankar pointed out that Indian foreign direct investment was growing fast in US markets. Indian companies have created 65,000 jobs, both in terms of greenfield projects and by means of mergers and acquisitions.

India is already the second fastest growing investor in the US, after the United Arab Emirates.

The report, released ahead of the visit of US President Barack Obama from Nov 6, said though there has been a decline in outward Indian FDI, the US has emerged as preferred destination with its share increasing from 5.7 percent in 2009 to 6.5 percent in 2010.

Informational Technology, pharmaceuticals and manufacturing sectors account for about 60 percent of the deals in the last two years.

— Indo-Asian News Service

Filed under: Economy

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