Taking their business ties to a new level, India and the United States on Wednesday signed a 'framework' for cooperation on trade and investment.
The volume of trade between the countries has more than doubled in the past five years. The agreement was signed by commerce minister Anand Sharma and US trade representative Ron Kirk here.
The framework was signed in the presence of Meera Shankar, India's ambassador to the US, USIBC president Ron Somers, and Bharti group vice-chairman and Ficci president Rajan Bharti Mittal.
In the first significant step taken under the framework, Sharma and Kirk announced the launch of an initiative called 'Integrating US and Indian Small Business into the Global Supply Chain'.
The initiative will expand trade and job-creation opportunities for companies in both countries.
Sharma said, "We want to create the right environment to ensure that the relationship brings maximum benefit to the maximum number of people. We will do so by promoting inclusive growth.
"We also intend to use this framework to encourage the development and deployment of clean energy and environmental
technologies as well as to support India’s infrastructure growth."
The move will directly support US president Barack Obama's national export initiative as well as the recently announced budget initiatives of the Indian government.
"There is almost limitless potential for growth in trade between our two countries, and that can contribute to economic recovery and job creation in the US and continued economic growth in India," Kirk said after inking the deal.
He said the two countries can realise this potential by working together towards the goals set forth in the framework agreement, such as developing and enforcing policies that encourage technological innovation, increasing agriculture, services, and industrial goals, and increasing investment flows.
"Closer collaboration with entrepreneurs and private-sector leaders in both our countries will enhance our work," he said.
Following the signing ceremony, Kirk and Sharma hosted a meeting of a restructured private-sector advisory group to the US-India trade policy forum. This group will provide strategic counsel to enhance the two governments’ efforts to increase bilateral trade and investment.
The members of the group offered to work as implementing partners for initiatives undertaken by the trade policy forum, including the small business initiative announced on Wednesday.
It was in October last year that Kirk and Sharma announced their intent to finalise the "framework for cooperation on trade and investment" when they co-chaired the US-India Trade Policy Forum meeting in New Delhi.
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