Enamoured by India's status as one of the world's fastest growing economies, the US is telling its companies that the time is right for them to enter the Asian nation and high rate of return on investments is the most compelling reason.
"Now is the time for US companies to enter the rising Indian market," according to an export promotion agency of the US government.
For the US companies, the agency has named civil nuclear energy as the biggest potential Indian export market segment, estimated at about 150 billion dollars, followed by areas like renewable energy, aerospace and defense, mining and coal, security, healthcare, retail and auto.
"India is a free-market democracy with a legal and regulatory framework that rewards free enterprise, entrepreneurship and risk taking," according to a report compiled by Export.Gov, a collaboration of the US Department of Commerce's International Trade Administration with 19 other federal agencies.
The agency, which offers export assistance to the US companies on the behalf of the US government, has identified India as the 'market of the month'.
The US exports to India stood at 32.44 billion dollars in 2008, an 85 per cent increase from the previous year. The US imports from India was 39.89 billion dollars in 2008, up 65 per cent from the previous year.
"India’s sustained and forecasted GDP growth makes it one of the fastest growing economies in the world, and the second fastest in Asia. While its size and growth make it attractive as a market, the most compelling reason for investors to be in India is the high return on investment," the agency has said.
"India is a fast-growing economy with a dynamic and robust financial system. The highly diversified Indian economy has shown rapid growth and remarkable resilience since 1991, when economic reforms were initiated with the progressive opening of the economy to international trade and investment.
"The result was an average annual GDP growth of over 6.5 per cent in the past decade, with 8 per cent per annum expected in the long term," it added.
The Indian market, with more than one billion people, presents lucrative and diverse opportunities for US exporters with the products, services, and commitment that can meet the country’s needs.
"India’s requirements for equipment and services for major sectors such as energy, environmental, healthcare, high-tech, infrastructure, transportation, and defense will exceed tens of billions of dollars in the medium-term as the Indian economy further globalizes and expands," it said.
The report said that Indian companies were increasingly manufacturing finished products to meet growing domestic and export demands and at the same time were "sourcing sophisticated, efficient products and equipment from the US."