Hyderabad: India and the United States will soon conclude a limited trade deal hopes Mukesh Aghi, President and CEO of USISPF (US-India Strategic Partnership Forum) that hosted its second annual India Leadership Summit in Delhi on Tuesday. The summit was addressed by senior Indian and American leaders and CEOs including Ministers Dr S Jaishankar and Piyush Goyal.
Speaking to senior journalist Smita Sharma, Aghi said that if the climate in Kashmir improves, several US firms will be keen to invest there. Aghi, who along with several members of the forum met with Narendra Modi, said that the Prime Minister underlined that India’s democracy and ‘Dimaag’ (brain) can be leveraged by investors. Aghi, however, clarified that Modi did not politically endorse Donald Trump in Houston for the 2020 US Presidential Election as projected by the Republican Election Committee.
Here’s a transcript of Mukesh Aghi’s conversation with ETV Bharat. US Companies Keen to Invest In Kashmir- USISPF President
We expect the trade to grow this year from 142 billion USD to 160 billion USD: Mukesh Aghi Q- What is your mood at the state of Indo-US Trade presently? What is the big challenge?
You have to separate the trade agreement from the trade between the two countries. We expect the trade to grow this year from 142 billion USD to 160 billion USD. Last quarter US exports to India were up by 30 percent. Overall trade is up by 16 percent. When you talk to the US companies in India most of them are showing double digit growth. Overall trade is going well. What we need to do is to wrap up the trade agreement. As I understand the difference is very minor now, they will get concluded. By the month of November or December, we should have an agreement.
Q- We heard assurances about the trade agreement coming in from Ministers Piyush Goyal, Dr S Jaishankar at the USISPF leadership forum. What are the key differences that are preventing a limited trade deal from being arrived at?
There are certain red lines. India has red lines on stents, knee caps. The US has certain red lines in trying to export apples and almonds. They just need to find the right balance. And I believe the intent and the attitude on both sides, Mr.Piyush Goyal and Mr. Lighthizer, is to make this happen and I think this will happen.
Q- You along with other US business leaders met with PM Modi last night. What thoughts were shared?
From our side, we have business people who are keen to invest more. The message was that India is still a very promising market. We are going to double down in India from every aspect. 5 or 10 years from now was India becomes a 5trillion USD market, we want to be a part of that story and journey also. Prime Minister said we have democracy and ‘Dimaag’ (brains) which you can leverage. He focused on how he wants to have ease of living in India and that quality of life improves in India. We had a fantastic candid dialogue and member companies are very keen to invest and increase their footprint into India.
Q- At the USISPF forum Mr.Goyal said that he did not know the T of Trade till 30th May and that his counterpart Lighthizer has been hand holding him through complex negotiations. Critics are saying this is not humility but diplomatic naïveté. Your thoughts.
I don’t think so. As far as negotiations go Mr.Goyal is as street smart as Mr.Lighthizer. So do not think there is anything of concern.
Q- Ahead of PM Modi’s recent US visit, some American lawmakers wrote to Trump administration seeking at least a partial reinstatement of GSP (Generalised System of Preferences) for India. Where do things stand and how much is the revocation of GSP hurting India?
As far as India’s export to the US is concerned, after GSP was pulled out, it has had no impact. US importers are putting pressure on Trump administration to make sure GSP comes back to the table. GSP is back on the table for negotiations and there will be some kind of partial adjustments that we will see.
India becomes a market for these (US) companies as China slows down or closes itself to US companies: Mukesh Aghi
Q- Is India in a position to benefit from the ongoing US-China trade war?
India has made some changes by lowering taxes. New manufacturing coming in here end of this month can get 17 percent tax breaks. India has to go step further on labour reforms, land reforms. But what we are seeing is a lot of US companies which are members, approximately 200 of them, looking at India seriously to have a China plus One strategy. And in our analysis what we have seen is almost 21 billion dollars worth of investment to come in were these companies to move their manufacturing to India. I think they will because India is not just a manufacturing environment but also becomes a market for these companies as China slows down or closes itself to US companies. From an overall business perspective, we are seeing a much more momentum coming to India as far as manufacturing goes.
Q- Why would the business be then heading to Indonesia, Vietnam? What more does India need to do? What is going to Vietnam, Thailand or Bangladesh is more of low-end manufacturing.
What these guys are looking for are highly skilled engineering forces, highly skilled designers, and they find those in India and can scale up also. So when I look at overall India is one segment they have to come in. Challenge is that basically trying to convince them and that is where the Indian government has to step up and tell the Indian story and understand what their issues are, be it on labour, land or could be on ease of doing business. We are now number 77 on ease of doing business, but China is 26. We have a gap to bridge and that is where we have to focus so we are in top 50 of ease of doing business.
I think they (Republicans) just tried to leverage PM Modi being there for their own agenda: Mukesh Aghi
Q- The Republican campaign committee projected the Houston rally as a political endorsement for Donald Trump for the 2020 Presidential Election. Is that a correct interpretation?
I don’t think so. We need to understand why did Trump go down to Houston. Texas is going to become a swing state in the next election. Only 14 percent of Indian Americans voted Republican in the last election. So what you will see is Trump trying to woo those Indian Americans. And they are the most affluent minority group and on a per capita basis that contributes the highest to a political campaign. So there is multiple agenda. And then you have a captive 50000 plus audience. So I do not think that Prime Minister Modi endorsed Donald Trump. In fact, he hosted Nancy Pelosi (Democrat Leader and Speaker of House) for the 150th Gandhi anniversary commemoration event on The Hill. She said India has bipartisan support and my support is with India. So if there was any doubt, she took it away.
Q- Was it a deliberate misrepresentation by Republican election committee?
I think they just tried to leverage PM Modi being there for their own agenda.
There is interest on part of US companies to explore investment in J&K: Mukesh Aghi
Q- Has there been a special outreach from GOI to seek American investment into Jammu and Kashmir post abrogation of Article 370?
There is interest on part of US companies to explore investment in Jammu and Kashmir. You have an area which can be a great tourism destination. You will see some kind of investment seminar or summit taking place in J&K itself. On issue of human rights, there are some people trying to exploit that. And we have heard that many times DC. But because of the clampdown in the past 70 days, less or, no killing is taking place in Kashmir. So Kashmir has seen a midterm or long term sense of stability but with the clampdown, we do not know what is happening really. But we are also seeing communications getting restored. We hope things settle down in the near future itself because US companies would be very keen to go and open up the market there
