Two-day convention to bolster Indo-US trade

As the South Block gets ready to welcome its White House counterparts for the upcoming India-US strategic and commercial dialogue, Indian officials will already have a set of key takeaways presented to them by Indo-US deliberation. This deliberation is the outcome of the two-day convention organised by Indo-American Chambers of Commerce (IACC). IACC will give their recommendations that could be discussed on August 30. The recommendations cover sectors like Financial, Infrastructure, Infrastructure, Oil and Gas, Energy, Heavy Industries, Railways, Pharmaceuticals and Technology.

In a report by PricewaterhouseCoopers (PWC), it has stated, “India is well positioned as a major investment destination for the global community, particularly the US.” Reiterating this view, E N Dwaraknath, Partner at PwC India’s International Tax Practice added that the macroeconomic stability, resilience and ability to deal effectively with

external shocks and the government’s proactive initiatives are making India an attractive market. Sector-wise points of two-day convention:

Banking/ financial sector: The sector has witnessed positive changes like down cycle in terms of inflation, stable currency and cleaning up of books. The stable macro situation allows focus on resolution of NPA situation and credit expansion. Fintechs could also been an opportunity to strengthen India-US relations. Apart from banking, nonbanking finance companies will partake in the growth of the sector.

Infrastructure: With the adoption of projects with hybrid and EPC model, the trust factor around the sector is all-time high. There has been improvement in time taken for approvals and clearances. Apart from roads, the government is looking at Inland water transport as the key focus area in the coming months. The growing number of roads projects would require contractors providing better quality and low priced construction. Credit guarantee schemes will improve further.

Oil and gas: The fall in crude oil prices have led the government to adopt policy measures; and allowed retail businesses to go through a transformation. The low prices could make differentiated pricing across retail outlets a reality. The decline in prices can be translated differentially by various groups. However, net impact has been positive. This could be used to improve infrastructure in the sector.

Energy: Despite energy efficiency, India would require two to three years to meet their demands. Power will help India achieve its growth but the concern for the country will be to keep its production of hydrogen under control. There is a lot happening in energy with schemes like UDAY making India’s energy sector attractive for investments.

Defence: This sector has attracted huge investment after India’s Make in India initiative. Other policies such as ease of doing business and increase in FDI limits have further encouraged investment and strategic partnership in the field. India and America have been using this as an opportunity for both countries.

Technology: India and America should start a dialogue so that India can have access to technology that are available in the US. This will help both countries to grow. Key sectors that will benefit from this are healthcare, education and retail.

Heavy Industries: India is keen to adapt to technology for better future. India needs products that are smarter and efficient. Technology like robotics and 3D printing will play a huge role in the sector. Here, US can contribute.

Railways: In terms of funding, railway faces no problem but taking railways to next level in terms of efficiency and capacity is a problem. Clarity in regulation by the Indian Railways would play a critical role. This will open up inflow of next gen technology that is requirement.

Pharmaceuticals: Compliance with FDA and change in Indian mindset is required in this sector. However, this is an opportunity for companies to set-up state-of-art technologies in India that meets the global requirement. It is also about building capacity and capability. This sector will grow further.