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Home / India / US business lobby vie to enter India

US business lobby vie to enter India

After China, India is emerging as the new destination for US business to take advantage of its fast-growing market.

india Updated: Feb 01, 2007, 16:49 IST
Indo-Asian News Service
Indo-Asian News Service
None

After China, India is emerging as the new destination for American business with several states planning to send trade missions to take advantage of its "fast-growing market".

Governors from Virginia and Iowa have been there, and Minnesota, California and Utah are lining up gubernatorial visits for this year, according to Michael Taylor of the US-India Business Alliance that helped organise the earlier missions.

"There is sort of a stampede thing. India is very much on everyone's radar scope now," said Taylor, the alliance's executive vice president, who has been in contact with at least a dozen states about possible trips.

"It's just a question of when they decide to go and how they decide to go. I think they feel a necessity to do it. The China mission was something you had to tick off. India has now become that."

Minnesota's Republican governor Tim Pawlenty is planning to lead a 30-member trade mission to India Oct 20-27 with stops in New Delhi, Bangalore and Mumbai.

"We view this as a tremendous opportunity to better acquaint Minnesota with India and better acquaint India with Minnesota," said Pawlenty, announcing the trip to a country that now makes up a tiny fraction of Minnesota's roughly $14 billion in annual manufactured exports.

The agenda will include market and industry presentations, networking events, business roundtable discussions, customised one-on-one business matchmaking meetings, and other similar events.

In a message to Minnesota business leaders about the trade mission to the fast-growing market of India, Pawlenty said, "I invite you to take a closer look at business opportunities in India, and I encourage you to consider applying to join the delegation."

There are many compelling reasons for all types of Minnesota companies to expand trade in India, he said and outlined "just a few":

* Fast-growing market. With a population of more than one billion, India is the world's fastest growing, free-market democracy. India's GDP is growing at about nine percent annually. US manufactured exports to India reached $6.8 billion in 2005 - an increase of 111 percent since 2000. Minnesota manufactured exports over the same period rose 208 percent to $85 million.

* Major infrastructure improvements. Over the next several years, India's transportation, energy, environmental, health care, high-tech, and defence sectors are expected to undergo major overhaul, which will create greater demand for products and services.

* Tremendous consumer demand. India's middle class (200 million people and growing) has increasing purchasing power and increasing consumer demand.

* Pro-American environment. With an overwhelmingly favourable impression of the United States, India is one of the most pro-American countries in the world and is eager to work with American businesses.

* Youth power. More than 58 percent of the Indian population is under age 20. That's more than 564 million people - nearly twice the total population of the United States. This younger population has an increasing desire for high-tech products and services.

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