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.