U.S.-India have signed several landmark trade deals worth 10 bn dollars: Obama

Saturday, November 6, 2010

MUMBAI - The United States President Barack Obama said here on Saturday that “several landmark” trade deals, worth 10 billion dollars, have been reached between the U.S. and India to create about 50,000 jobs in the United States.

Obama, while expressing confidence that he was absolutely sure that relationship between the two countries was going to be one of the defining partnerships of the 21st century, asked India to reduce trade barriers, while committing to reciprocate.

Addressing the US India Business Council (USIBC) meet President Obama said: “There is no reason why India cannot be our top trading partner (from 12th position now)… I’m absolutely sure that the relationship between India and the US is going to be one of the defining partnerships of the 21st century,” President Obama

In his speech, the U.S. President chose to highlight about various landmark deals which had been signed just ahead of his maiden visit to India. “Several landmark deals have been done shortly before my arrival here. Boeing is going to sell dozens of planes to India and GE is going to sell hundreds of electric engines. The deals are worth USD 10 billion and will create more than 50,000 jobs in the US.”

Addressing about 200 Chief Executive Officers and other senior officials related to commerce and trade, Obama informed that the commercial deals include the purchase of 33 737s from Boeing by SpiceJet Airlines; the Indian Army’s plans to buy aircraft engines from General Electric; and preliminary agreement between Boeing and the Indian Air Force on the purchase of 10 C17s.

Reliance Power, just ahead of the address at USIBC, announced power equipment deal for 2,400 Mega Watt plants from GE and low-cost carrier Spicejet announced a deal to buy 33 new generation 737 aircraft from Boeing.

On this occasion, Obama said this was barely scratching the potential and described India as “the market of the future where Washington was willing to step up investments, provided uncertainties relating to tariffs and other barriers were taken care of.”

Easing of export rules could result in ending the technology denial regime against Indian entities such as Defence Research and Development Organisation (DRDO) and Indian Space Research Organisation (ISRO), Obama also urged India to reduce barriers to trade and investment in order to boost economic relations between the world’s two largest democracies.

He said the relationship between America and India should be win-win for both the sides, while acknowledging concerns in America about outsourcing .

He said U.S views “India as a market of future” but mentioned that: “Backoffices in India cost American jobs; we don’t want one-way traffic in trade; it’s a dynamic two-way relationship for jobs and higher living standards.”

Emphasising on increasing U.S. export to India, Obama during his speech said: “Economic agreement will create jobs in both U.S. and India,”

Mentioning India helped build India, India helped build the U.S., Obama said: “Indian companies were amongst the highest investors in the U.S.”

He also said: ” No restrictions should remain for high tech trade” (ANI)

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