India, US talk investment treaty to aid fund flow
India and the US are negotiating a bilateral investment treaty to enable financing of critical sectors across the economic spectrum, finance minister Pranab Mukherjee told business leaders at a meeting organised by the India-US CEOs’ forum. HT reports.business Updated: Nov 08, 2010 21:27 IST
India and the US are negotiating a bilateral investment treaty to enable financing of critical sectors across the economic spectrum.
“We are negotiating a bilateral investment treaty (with the US) and are committed to take further initiatives that will contribute to creating a more conducive environment for investment flows,” finance minister Pranab Mukherjee told business leaders at a meeting organised by the India-US CEOs’ forum.
The US continues to be a prime source of investment, Mukherjee said.
“Economic policy, finance and trade constitute important planks of our bilateral relations, for us, the US remains a prime source of investment, technology and an important trading partner,” he said.
The importance of stronger economic relations with the US will be enhanced as India makes efforts to increase investment in infrastructure, and give a fresh impetus to the manufacturing sector, Mukherjee said.
In a separate meeting organised by the Confederation of Indian Industry, he said several US companies could play a crucial role in delivering financial inclusion.
“We require products that meet the specific requirements of rural areas and are able to run in an energy efficient manner. They need to be portable and easy to use,” he said.
US companies can also design financial products and services relevant to the poor. “Such products and services need to be simple, efficient and easily usable,” he said.
He said nearly 30% of the total spending on infrastructure in the first three years of the XI Plan period came from private sources. “As we go into the next plan period, we expect this to go upto nearly 50%,” he said.