WASHINGTON -- Kicking off a high-profile U.S. visit, Indian Prime Minister Manmohan Singh laid out his vision for "mutually beneficial" economic ties with the U.S. and said officials this week will sign a new memorandum of understanding on energy security and climate change.
Prime Minister Singh speaks to the U.S. Chamber of Commerce.
"India's new and evolving relationship with the United States is in many ways the natural consequence of changes in economic policy and business practices that have occurred as countries have responded to processes of global economic integration," Mr. Singh said in a speech at the U.S. Chamber of Commerce.
The economic relationship, he said, is characterized by a "two-way flow," with U.S. corporations engaging in high-tech work in India, grooming talent and relocating research facilities there. At the same time, he said, Indian companies that make autos, tractors, pharmaceuticals and software are investing in the U.S. and creating jobs here.
The deepening link between the U.S. and India will be on display during Mr. Singh's trip to Washington, where officials will discuss critical trade and security issues, and sign a host of memorandums. Mr. Singh will be the guest of honor at a state dinner Tuesday at the White House, President Barack Obama's first since taking office.
At the Chamber of Commerce, Mr. Singh said he expects the Indian economy to return to 9% annual growth within the next two years, compared with around 6.5% in the current fiscal year, despite slower growth elsewhere crimping exports. He said strong domestic investment and "ample human resources" would help India offset soft export markets.
"We enjoy a demographic dividend in terms of a growing working-age population in a world that is aging very rapidly," Mr. Singh said. "American companies interested in global markets would be well advised to look at the emerging possibilities now on the horizon in India."
He invited U.S. firms to invest in infrastructure projects, saying India needs "massive investment" in its energy, transport and urban infrastructure to support its expected economic growth.
Mr. Singh didn't provide details of the energy agreement said the document would provide a "framework for pursuing bilateral cooperation in specific areas."
Mr. Singh also said officials are finalizing the details of the nuclear-cooperation agreement, which he called a "landmark" in Indo-U.S. relations.
"Once that is done it will remove restrictions on the flow of technology in nuclear and many other areas," Mr. Singh said. "This will open a large areas of commercial opportunity for U.S. business in India."
The civil nuclear-energy cooperation pact between the U.S. and India was agreed last year, but hasn't been officially concluded amid a host of lingering hurdles. Officials are hoping to seal progress on the accord during Mr. Singh's Washington visit.
At issue are safeguards to ensure that low-enriched uranium sold by U.S. firms doesn't get reprocessed as weapons-grade fuel, rules for the handling of enriched uranium and concerns that that nuclear fuel could be used for military purposes. U.S. companies also want India to pass a law giving them liability protection in the case of a nuclear accident.
Mr. Singh also touched on broader defense collaboration, saying rules that allow Indian defense suppliers to have up to 26% foreign investment have opened a new route for cooperation on defense.
http://online.wsj.com/article/SB125900683784261111.html?mod=googlenews_wsj
