US firms invited to invest in India

WASHINGTON: PTI Marketing India as a lucrative investment destination, Commerce and Industry Minister Kamal Nath has invited investments from US firms in sectors such as agriculture, energy and civil aviation.

"The majority of US firms in India have been reporting double-digit year-on-year growth. There is immense scope to have greater trade, investment and technology cooperation between India and the US," he said adding that American investors need to avail the growing opportunities in India's agriculture, energy, tourism and civil aviation sectors.

Speaking at the plenary session on 'Listening to one another- The Importance of a Deeper Trade Relationship' of the Indo-US Business Council here, Nath said US is India's largest trading partner and foremost export destination accounting for 16.83 per cent of India's export and around 6.34 per cent of its imports in 2005-06.

An official statement quoted Nath as saying that companies such as Coke, Bank of America, Citibank and GE have been operating successfully in the country.

The Minister also quoted a Goldman Sachs report predicting that productivity growth will help India sustain an over 8 per cent growth till 2020 and it would become the world's second largest economy by 2050.

US is the second highest foreign direct investor in India and since 1991 US companies have invested $5.9 billion in the country. In 2006-07, FDI proposals from US amounting to $856 million were granted approvals.

During April-February 2006-07, India's exports to US were $16.9 billion while imports were valued at $9.2 billion. Major items of Indian exports to US are gems and jewellery, RMG cotton including accessories, machinery and instruments. India mainly imports goods such as electronic items, machinery and fertiliser.