US pitches for better economic ties between India, Pakistan

 

In an address at the American Centre here, US Assistant Secretary of State for South and Central Asia Nisha Desai  Biswal said her government wants India's greater trade  footprint in Afghanistan, Pakistan, Bangladesh and Myanmar to ensure prosperity in the region.  Biswal, a second generation US immigrant, said the American government would encourage India to normalise business links with Pakistan. She said despite "political courage" shown by the leadership of the two countries over the past few years, annual bilateral trade volume between the two neighbours was just over USD 2.5 billion in 2013.  

It could "easily grow" to USD 10 billion, she said.  

 

"Pakistan can play a critical role by granting non - discriminatory market access to India, and India can reduce non-tariff barriers to increase trade between the two  countries," she said delivering a lecture on 'India and US:  Our economic opportunity in tomorrow's Asia'.  

 

India's greater economic activities in Central and South East Asia will create new incentives for peace which is good for both American as well as Indian people, Biswal said.  

 

On business environment in India, the US official said there was need for transparency in its tax policies and commitment for strengtheing protection of intellectual property rights.  

 

"Equally important is the need for transparency in India's tax policies, timely regulatory approvals and contract enforcement, and a commitment to strengthening protection of  intellectual property rights," Biswal noted.  

 

Lauding India's recently announced visa-on-arrival  programme, she said this decision along with US Global Entry  programmme will help enhance the way real-time business will  be conducted between the nations. 

 

Biswal, who is on a visit to India, had yesterday called  on Foreign Secretary Sujatha Singh during which she had  conveyed the US government's message that ties between the two  countries were "important" and both sides should move forward  putting behind their "differences" over the Khobragade  episode.  

 

In her address, Biswal said the willingness by both the  US and India to talk about their differences indicates that  they are "confident and mature partners".  

 

She said certain policies in India are "discouraging  investment into India, inhibiting innovation and holding India  back from developing the world-class manufacturing sector it  needs to compete and generate jobs for the millions of Indian  youth entering the job market".  Biswal said that the US "New Silk Road" programme in Asia  aims at reducing trade barriers to support international  development and cross-border projects.  

 

"We are focusing our efforts in creating a regional  energy marking linking Central and South Asia; promoting trade  and transport routes; improving customs and borders; and  linking businesses and people," she said. 

 

 

The US Assistant Secretary of State termed as "highly  impressive" the demographics of India with 600 million people  being under the age of 25 years and the 'consumer class'  expected to double to 575 million people by 2025.  

 

"If India can help nurture the talents of its people and  provide them with productive outlets, India will greatly  benefit from its youth boom. We are betting that by 2030  India can and will grow to the third largest economy in the  world in terms of nominal GDP and not just purchasing power  parity. Some even predict that India could be the largest  economy by 2050," Biswal said.  

 

"And if India's enviable demographic boom is to be  harnessed, India must make an unprecedented commitment to  skill and knowledge development across all sectors of the  economy," she added.