Obama visit not expected to spawn big-ticket deals

No big-ticket financial deals are expected to be signed during US President Barack Obama’s visit to India, it is learnt.

The visit will have a political focus, rather than economic, a source in the finance ministry told this newspaper.

The chief executives of top US companies, who are part of the Obama delegation, however, would talk business with their Indian counterparts and may even initiate large deals, another source pointed out.

Also significant would be lobbying by the US government representatives and businesses for opening up of certain sectors like retail trade to foreign investment.

Wal-Mart CEO Michael Duke is already in India and talking to government representatives on opening the retail trade in India.

A government official, who did not want to be named, said the Obama visit would be remembered as a “friendly, flag-hoisting occasion”.

Besides finance ministry officials ruling out big-ticket deals during the Obama visit, representatives of defence and railway ministries have also denied any mega transaction in their respective sectors.

Despite the earlier buzz on large defence deals to be signed during the Obama visit, government officials have now ruled out any such pact.

Even railway ministry officials have pointed out that no deal was likely for the sector during the Obama visit, though there have been reports suggesting significant Indo-US commercial agreements in railways.

A top railway board official told DNA: “As of now, no signing of pact on railway manufacturing unit, or any other infrastructure project with the US during Obama’s visit is in sight.”

Additionally, no interaction of the railways representatives is on the cards as of now with the Obama entourage.    

When asked whether American major GE had been shortlisted by the railways for the Rs1,300 crore Madhepura electric locomotive unit, another official said, “we have shortlisted four players for the project and GE is one of them.”

Other firms are Bombardier, Alstom, and Siemens. The financial bidding round for it is scheduled for November end.

Only after the completion of the bidding round in November, the project will be awarded to the suitable contender, the official added.

As reported earlier, an American business delegation, including CEOs of many Fortune 500 companies, is expected to discuss issues related to jobs, outsourcing of IT services, science and technology, social security tax, aviation and entity list, with the top names in the Indian corporate world during the visit.

Obama will kick off his 4-day India visit with an address to the business delegates in Mumbai. Obama’s predessors George Bush and Bill Clinton also addressed the industry during their respective visits to India.