By Lalit K JhaWashington, Oct 13 (PTI) The goal of increasing theannual trade between the US and India to USD 500 billion isnot a "distant dream" given the opportunities that New Delhioffers to American companies, particularly in aviation anddefence sectors, Finance Minister Arun Jaitley has said.
Jaitley said the relationship between India and the UShad evolved into a very strong partnership in the last fewyears and goals like 'Mission-500' outline and re-emphasisethe objective of the partnership.
"If one sees the opportunities that the defence andaviation sector in itself offers, increasing annual bilateraltrade to USD 500 billion is not a distant dream," he told aWashington audience yesterday when asked if the USD 500billion bilateral trade target was achievable.
According to the United States Trade Representative(USTR) figures, India was US' ninth largest trading partnerwith the total two-way trade of USD 67.7 billion last year.
It is loaded in favour of India, which runs a surplus of USD24 billion.
Jaitley said a lot of US companies had made investmentsin India and now a lot of Indian companies feel comfortable inmaking investments in America.
"It is an exercise which requires to be taken forward,"he said at an event organised by the Federation of IndianChambers of Commerce and Industries held at the headquartersof the International Monetary Fund.
Jaitley said one of the suggestions which was mooted inthe meeting with US Commerce Secretary Wilbur Ross was thatthe two countries must get back governmental participation inprivate sector conferences.
For the first a different concept is taking place inNovember when a large number of American businesses aretravelling to India for the Global Entrepreneurship (GES), hesaid, adding that the exercise will probably be repeated inthe US next year.
"This would provide a great opportunity for Indianbusinesses here," Jaitley said.
He said over the next decade or so India's aviationsector is all set for a huge expansion.
"US companies are a natural investor in that particularsector," he said.
"We have taken a huge initiative in the defence sectorand we want these companies in partnership with Indiancompanies to set up manufacturing facilities in India itself,"Jaitley said.
Responding to a question on land and labour reforms,Jaitley said they were not an immediate problem to the reformprocess started by the government in these two sectors.
"We have allowed the State Governments to make whatevernecessary changes they want to make in land acquisition laws,"he said.
Noting that the labour problem is overstated in India,Jaitley said the age of workers strike is long over in India.
There has not been any hurdle of substantial nature inseveral areas, for instance the reforms in the banking andaviation sectors, he said, adding that in the last three and ahalf years, the government has been broadly sticking to thefiscal deficit targets.
"We have realised the merit of trying to stick to that,"he said.
The government was on target on direct tax, Jaitley said,asserting that on GST, it was too early to discover a patternbecause of a transition phase.
"Our priority is to include fiscal prudence at a veryhigh level," he said.
Jaitley said the government was trying to address theproblem of non-performing asset on a very high priority.
This has two aspects. One is to recover what isrecoverable. For this the government has created new laws,amended laws and have created a new machinery, which willprobably take care of it, he said.
Jaitley said there was a need to strengthen public-sectorbanks so that their ability to lend in India is maintained.
This issue is at a high priority area for the government,he noted.
"I can tell you that when you undertake structural reformof this kind, there could obviously be short term impact, onequarter, for two quarters or so.
"But these transient impacts should not be construed asany form of a long-term challenge because I do see that themed-term and long-term impact of all these changes iscertainly going to be very positive," Jaitley said whileresponding to a question on stimulus. PTI LKJMRJ.
This is unedited, unformatted feed from the Press Trust of India wire.