We fully share the goal of completing the WTO Doha Development Agenda (DDA) before the end of 2006, and agree to work in partnership to help achieve this outcome.

During our discussions, we agreed to meet the task with ambition, determination and a readiness to contribute, consistent with our roles in global trade, and to keep the development dimension in focus. The system of trading rules to which our two great democracies have contributed immensely must be strengthened. Towards this global cause, we recommit ourselves and invite all key participants to demonstrate their leadership.

We agree that a successful Round depends upon progress in all areas of the negotiations if we are to meet our goal of promoting development through trade. We are committed to a DDA result consistent with the mandates already agreed that realize a substantial outcome in all three pillars of the agriculture negotiations (domestic support, export competition and market access); significant improvements in market opportunities in manufacturing and services; and appropriate disciplines, including transparency of regulatory practices in services. We also believe we should strengthen the rules that facilitate trade, where we have jointly made proposals. Work in all these areas must go hand in hand.

We agree to pursue an ambitious agenda for the first half of 2006,consistent with the important milestones that were set at the Hong Kong Ministerial for agriculture, manufacturing, services and other issues, and continuing to press for the goal of concluding the negotiations by the end of 2006.

We will continue to work to promote reform, respond to the concerns of developing countries, and create opportunities for growth for all. We are building the trading system of the future, where progressive liberalization and reform result in improvement in standards of living for all, in particular for the millions of poor across the developing world.

While working for a successful Doha Round, we also reaffirm our commitment to strengthen and deepen bilateral trading ties. We note with satisfaction the successful implementation of our initiative to create the U.S.-India Trade Policy Forum and the CEO Forum to this end, and in particular the achievements in the areas of agricultural trade, investment, trade in services, the reduction of tariff and non-tariff barriers to trade, and spurring innovation and creativity. We agree to promote innovation, creativity and technological advancement by providing a vibrant intellectual property rights regime. As two dynamic economies with many complementary interests, the U.S. and India will seek to enhance bilateral trade and investment ties by expanding private sector contacts, dismantling barriers to trade, building trade capacities and strengthening trade-promoting institutions.

March 2, 2006

* Joint statement of President George Bush & Prime Minister Manmohan Singh issued by the Office of the Press Secretary, White House

In quest of prosperity* 

President George W. Bush and Prime Minister Manmohan Singh today expressed satisfaction with the great progress the United States and India have made in advancing our strategic partnership to meet the global challenges of the 21st century. Both our countries are linked by a deep commitment to freedom and democracy; a celebration of national diversity, human creativity and innovation; a quest to expand prosperity and economic opportunity worldwide; and a desire to increase mutual security against the common threats posed by intolerance, terrorism, and the spread of weapons of mass destruction. The successful transformation of the U.S.-India relationship will have a decisive and positive influence on the future international system as it evolves in this new century.

Reviewing the progress made in deepening the global partnership between the United States and India since their Joint Statement of July 18, 2005, the President and the Prime Minister reaffirm their commitment to expand even further the growing ties between their two countries. Consistent with this objective, the two leaders wish to highlight efforts the United States and India are making together in the following areas, where they have:

FOR ECONOMIC PROSPERITY AND TRADE

(1) Agreed to intensify efforts to develop a bilateral business climate supportive of trade and investment by:

1. Welcoming the report of the U.S.-India CEO Forum, agreeing to consider its recommendations aimed at substantially broadening our bilateral economic relations, and directing the Chairs of the Indo-U.S. Economic Dialogue to follow up expeditiously with the CEO Forum;
2. Endorsing the efforts of the U.S.-India Trade Policy Forum to reduce barriers to trade and investment with the goal of doubling bilateral trade in three years;
3. Agreeing to advance mutually beneficial bilateral trade and investment flows by holding a high-level public-private investment summit in 2006, continuing efforts to facilitate and promote foreign direct investment and eliminate impediments to it, and enhancing bilateral consultations on various issues including tariff and non-tariff barriers to trade in goods and services, and preventing the illicit use of the financial system.

(2) Sought to expand cooperation in agriculture by:

(3) Reaffirmed their shared commitment to completing the WTO Doha Development Agenda (DDA) before the end of 2006, and agreed to work together to help achieve this outcome.

FOR ENERGY SECURITY AND A CLEAN ENVIRONMENT

(1) Welcomed the successful completion of discussions on India's separation plan and looked forward to the full implementation of the commitments in the July 18, 2005 Joint Statement on nuclear cooperation. This historic accomplishment will permit our countries to move forward towards our common objective of full civil nuclear energy cooperation between India and the United States and between India and the international community as a whole.

(2) Welcomed the participation of India in the ITER initiative on fusion energy as an important further step towards the common goal of full nuclear energy cooperation.

(3) Agreed on India's participation in FutureGen, an international public-private partnership to develop new, commercially viable technology for a clean coal near-zero emission power project. India will contribute funding to the project and participate in the Government Steering Committee of this initiative.

(4) Welcomed the creation of the Asia Pacific Partnership on Clean Development and Climate, which will enable India and the U.S. to work together with other countries in the region to pursue sustainable development and meet increased energy needs while addressing concerns of energy security and climate change. The Partnership will collaborate to promote the development, diffusion, deployment and transfer of cleaner, cost-effective and more efficient technologies and practices.

(5) Welcomed India's interest in the Integrated Ocean Drilling Program, an international marine research endeavor that will contribute to long-term energy solutions such as gas hydrates.

(6) Noting the positive cooperation under the Indo-U.S. Energy Dialogue, highlighted plans to hold joint conferences on topics such as energy efficiency and natural gas, to conduct study missions on renewable energy, to establish a clearing house in India for coal-bed methane/coal-mine methane, and to exchange energy market information.

FOR INNOVATION AND THE KNOWLEDGE ECONOMY

(1) Emphasizing the importance of knowledge partnerships, announced the establishment of a Bi-National Science and Technology Commission which the U.S. and India will co-fund. It will generate collaborative partnerships in science and technology and promote industrial research and development.

(2) Agreed that the United States and India would work together to promote innovation, creativity and technological advancement by providing a vibrant intellectual property rights regime, and to cooperate in the field of intellectual property rights to include capacity building activities, human resource development and public awareness programs.

(3) Agreed to continue exploring further cooperation in civil space, including areas such as space exploration, satellite navigation, and earth science. The United States and India committed to move forward with agreements that will permit the launch of U.S. satellites and satellites containing U.S. components by Indian space launch vehicles, opening up new opportunities for commercial space cooperation between the two countries.

(4) Welcomed the inclusion of two U.S. instruments in the Indian lunar mission Chandrayaan-1. They noted that memoranda of understanding to be signed by ISRO and NASA would be significant steps forward in this area.

(5) Welcomed the U.S. Department of Commerce's plan to create a license exception for items that would otherwise require an export license to end-users in India engaged solely in civilian activities.

FOR GLOBAL SAFETY AND SECURITY

(1) Noted the enhanced counter-terrorism cooperation between the two countries and stressed that terrorism is a global scourge that must be fought and rooted out in every part of the world.

(2) Welcomed the increased cooperation between the United States and India in the defense area, since the New Framework for the U.S.-India Defence Relationship was signed on June 28, 2005, as evidenced by successful joint exercises, expanded defence cooperation and information sharing, and greater opportunities to jointly develop technologies and address security and humanitarian issues.

(3) Reaffirmed their commitment to the protection of the free flow of commerce and to the safety of navigation, and agreed to the conclusion of a Maritime Cooperation Framework to enhance security in the maritime domain, to prevent piracy and other transnational crimes at sea, carry out search and rescue operations, combat marine pollution, respond to natural disasters, address emergent threats and enhance cooperative capabilities, including through logistics support. Both sides are working to finalize a Logistics Support Agreement at the earliest.

(4) Welcomed India's intention to join the Container Security Initiative aimed at making global maritime trade and infrastructure more secure and reducing the risk of shipping containers being used to conceal weapons of mass destruction.

(5) Reiterated their commitment to international efforts to prevent the proliferation of weapons of mass destruction.

(6) Building on the July 2005 Disaster Relief Initiative, noted the important disaster management cooperation and their improved capabilities to respond to disaster situations.

(7) Recognized the importance of capacity building in cyber security and greater cooperation to secure their growing electronic interdependencies, including to protect electronic transactions and critical infrastructure from cybercrime, terrorism and other malicious threats.

DEEPENING DEMOCRACY AND MEETING INTERNATIONAL CHALLENGES

(1) Recalled their joint launch of the UN Democracy Fund in September 2005 and offered the experience and expertise of both Governments for capacity building, training and exchanges to third countries that request such assistance to strengthen democratic institutions.

(2) Welcomed the decision of India and the United States to designate a representative to the Government Advisory Board of the International Centre for Democratic Transition (ICDT) located in Budapest to facilitate cooperative activities with ICDT.

(3) Agreed that the Virtual Coordination and Information Centres set up in September 2005 should be further strengthened and a bilateral meeting aimed at developing a practical programme for utilization of its services be held soon.

(4) Expressed satisfaction at the expedited USFDA drug approval processes that strengthen the combat against HIV/AIDS at the global level and encourage greater corporate participation to meet this challenge, including the establishment of the Indo-U.S. Corporate Fund for HIV/AIDS.

(5) Agreed to expand bilateral efforts and continue cooperation in the area of medical research and strengthen technical capacity in food and drug regulation in India as well as address the concern on avian influenza, including agreement to reach out to the private sector, develop regional communications strategies, and plan an in-region containment and response exercise. The President welcomed India's offer to host the International Partnership on Avian and Pandemic Influenza meeting in 2007.

(6) Welcomed India's membership in the Coalition Against Wildlife Trafficking, a partnership through which we will collaborate in the fight against illegal trade in wildlife and wildlife parts; we also welcome the opportunity to strengthen longstanding work together on the conservation of wildlife through cooperation on park management and ecotourism.

President Bush thanked Prime Minister Singh and the people of India for the warmth of their reception and the generosity of their hospitality.

March 2, 2006

* Joint statement of President George Bush & Prime Minister Manmohan Singh issued by the Office of the Press Secretary, White House

USINPAC : Ambassador for India abroad

THE U.S. India Political Action Committee (USINPAC) delegation of prominent business leaders, entrepreneurs, political activists, and professionals from the Indian-American community is back home after their week-long India visit with the message from the Indian Commerce Minister Kamal Nath that the U.S.-India Civilian Nuclear Agreement process is “not thrown away”. The delegation that dialogued with senior Indian government officials at the federal and state levels about the U.S.-India relationship, the growth of the Indian economy, and other important domestic issues was told that the Indian American community plays an important ambassadorial role for India abroad.

One theme woven through all the meetings was the importance of the Indian-American community and its continued engagement, and the role played by USINPAC in encouraging, informing and fostering that engagement. "All ethnic communities abroad maintain ties to their countries of origin, but the Indian-American community is particularly strong and focused in this regard, says Sanjay Puri, USINPAC Chairman and leader of the delegation. "Just as all Diasporas are not equally connected, so too not all home countries are as welcoming of their involvement as we always see time and time again on these visits with the Indian government and the society as a whole."

The USINPAC delegation was particularly interested in what Kamal Nath, the Minister of Commerce and Industry, had to say about the status of the U.S.-India Civilian Nuclear Agreement process. "There is a delay undoubtedly in the nuclear deal but it is not thrown away," said Minister Nath. The Minister went on to emphasis that additional time in the process should not alarm anyone given that this represents very new waters for both the American and Indian governments and so too their respective citizens as well.

Another important topic for Minister Nath was the role that the Indian-American community and USINPAC can and should play as educators and advocates in the United States on the realities of globalization. The Minister sees globalization as positively intertwining and benefiting the economies of the two countries.

Ashwini Kumar, the Minister of Industry, echoed the Commerce Minister’s thanks to the Indian-American community as fulfilling an important ambassadorial role for India abroad, and described the community as catalysts of change evident in the work on the nuclear deal and how the relationship with the United States has evolved from one driven by ideology to one driven by identity. "Over ninety percent of Indians feel socially, intellectually, and even culturally closer to America than anyone else in the world," Minister Kumar stated.

India Inc.: Deepening engagement *

"India Inc's engagement with the world has deepened significantly since 2000, with trade and investment flows in and out of India at historic highs and rising rapidly. 

The increased flow of investment in and out of India is especially significant.  India's global FDI has been surging - tripling in the first half of this year to roughly $11 billion - on the heels of last year's record $16 billion for the entire year.  These numbers, which for nearly a decade stayed around $3 billion annually, now reflect India's growth and dynamism.  

New areas of investment have come up in the wake of successful reforms, including financial service companies, construction (including highways), telecom and transportation.  In fact, investment in the services sector last year surged ahead of IT, while construction investment grew by a factor of six. 

FDI from the U.S. has now begun to fulfill expectations.  Although the U.S. has been India's largest investor for many years, flows hovered for years around a modest average of $400 million annually.  Now, American investment is growing by 50% per year - to nearly $900 million in FY07.  If we could track investments made through Mauritius, this number would no doubt be considerably higher. 

Notable too, last year saw the convergence of institutional and direct investment.  Historically, portfolio investment has vastly outstripped FDI, but in FY07, FDI beat Foreign Institutional Investment, reflecting investors' growing confidence in India's long-term future, rather than the attractions of current high valuations.

Just as powerful is the surge in outward FDI, putting India on the map as a source, not just a destination, for investment. 

Last year, India Inc. invested $9 billion outside India, more than quadrupling a rough average of $2 billion in the first part of this decade.  Tata's Corus deal and Hindalco's purchase of Novelis helped propel India's outbound mergers and acquisitions during the first half of 2007 to second place in the world behind Australia.   U.S. financial firms are helping Indian corporations utilize global capital to become major players and employers in world markets.

Demonstrating the two way nature of Indo-U.S. economic engagement, the U.S. has long been one of the largest recipients of Indian investment, receiving roughly one-fifth of India's investments abroad.  Indian investment in the U.S. is now spreading from an IT focus into other sectors, including pharmaceuticals and manufacturing, such as the Mahindras' tractor factories in the U.S.

Certainly, these multiple facets of India's deeper engagement with the global economy have helped propel India's growth rate to 9 percent levels, a feat that should be repeated this year, again helping to raise people out of poverty and bringing more into India's middle class.

These market-changing investment flows reflect how India's private sector is clearly exploiting the benefits of recent reforms and liberalization, driving economic growth and employment.  Continued reform and liberalization will help further boost this surging momentum and spread the benefits of rapid economic growth to more recipients across India. 

One engine to advance macroeconomic activity across India is further liberalization in India's banking and financial markets." 

*Extracts from speech delivered by David C. Mulford, US Ambassador to India at the 4th Indo-U.S. Economic Summit "Building Strong Partnerships" on September 18, 2007
 

India's trade with USA ( FY 2002-03 to 2006-07
(In million $)

Making history............

IN less than a year since the Republican became the first Indian-American to be elected to the US Congress in 46 years, the 36-year-old non-white Rhodes Scholar and the first Indian-American to head a state, Piyush ‘Bobby’ Jindal’s outright win in Louisiana Governor’s race once again proved the growing and strong political clout of the Indian-American community. Stating that Jindal “ is a role model for young Indian-Americans who look to public service as a life mission” The youngest US Governor-elect however retorted back during his campaign trail: “people want to make everything about race. The only colors that matter here are red, white and blue.”  Referring to the proposed legislation on real ethics reform Jindal in his victory speech said : "But please understand this: I'm not going to take "no" for an answer on reforming our ethics laws. 

also believe that the powerful 50 delegation Republicans in the House will be the catalyst to move that reform agenda forward. It's a bright day in Louisiana." 

The other focus contained in the first executive orders of Governor Jindal is the rebuilding of post-Katrina Louisiana. USIBA calls on the Indian-American business community to assist him in that rebuilding. Those parts of the American economy where Indian-Americans are most prevalent as business leaders - hospitali