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$10bn just a blip, US sees $1trillion opportunity in 20 yrs in India
NEW DELHI: The massive unemployment in the US, touching double digits, has put economics on top of the agenda for Barack Obama's visit, with 20 deals worth $10 billion being signed and, more important, estimated to create 50,000 jobs in the US.
But the deals signed in Mumbai to coincide with the US president's visit account for only a slice of the job opportunities that India can potentially spell for the Americans. The Obama administration is confident that the unfolding Indian growth story means huge business for American firms and jobs for the unemployed who last week vented their anger over continued joblessness by handing a commanding defeat to the Democrats. It has already activated a crack team in its embassy in New Delhi that is targeting 68 upcoming cities in India with a projected population of more than one million by 2030. With incomes in these cities likely to exceed $4 trillion, the team is to scour for deals worth at least $1 trillion, spread over sectors like education, health, energy and infrastructure, in the next 20 years.
The aggressive approach is already paying dividends. Industry studies carried out by Ernst & Young-Ficci and CII on the eve of Obama's visit say that Indo-US partnership in nuclear industry and military and civilian aircraft deals will create at least 270,000 jobs in the US over the next 10 years.
The Obama administration's target to double exports to India in the next five years is projected to create more than 10 million jobs. No mean achievement, given the fact that nearly 15 million Americans remained jobless in October, according to US Department of Labour.
The recent trade figures would support the strategy. US exports to India had doubled between 2005 and 2009. In the first seven months of 2010, exports have grown by 20%. India is the second fastest growing investor in US after UAE.
Contrary to the perception that FDI flow has been more to the emerging economies, the FDI inflow to India from the US in 10 years between April 2000 and May 2010 was $8.4 billion while FDI from India to US in five years between 2004 and 2009 was to the tune of $5.5 billion, according to a study by Ernst & Young and Ficci.
A similar study by CII estimates that to achieve 9% GDP growth, India would require $2.7 trillion investment in the next five years, of which $1 trillion would have to be in the infrastructure sector.
Read more: $10bn just a blip, US sees $1tn opportunity in 20 yrs - The Times of India $10bn just a blip, US sees $1tn opportunity in 20 yrs - The Times of India
NEW DELHI: The massive unemployment in the US, touching double digits, has put economics on top of the agenda for Barack Obama's visit, with 20 deals worth $10 billion being signed and, more important, estimated to create 50,000 jobs in the US.
But the deals signed in Mumbai to coincide with the US president's visit account for only a slice of the job opportunities that India can potentially spell for the Americans. The Obama administration is confident that the unfolding Indian growth story means huge business for American firms and jobs for the unemployed who last week vented their anger over continued joblessness by handing a commanding defeat to the Democrats. It has already activated a crack team in its embassy in New Delhi that is targeting 68 upcoming cities in India with a projected population of more than one million by 2030. With incomes in these cities likely to exceed $4 trillion, the team is to scour for deals worth at least $1 trillion, spread over sectors like education, health, energy and infrastructure, in the next 20 years.
The aggressive approach is already paying dividends. Industry studies carried out by Ernst & Young-Ficci and CII on the eve of Obama's visit say that Indo-US partnership in nuclear industry and military and civilian aircraft deals will create at least 270,000 jobs in the US over the next 10 years.
The Obama administration's target to double exports to India in the next five years is projected to create more than 10 million jobs. No mean achievement, given the fact that nearly 15 million Americans remained jobless in October, according to US Department of Labour.
The recent trade figures would support the strategy. US exports to India had doubled between 2005 and 2009. In the first seven months of 2010, exports have grown by 20%. India is the second fastest growing investor in US after UAE.
Contrary to the perception that FDI flow has been more to the emerging economies, the FDI inflow to India from the US in 10 years between April 2000 and May 2010 was $8.4 billion while FDI from India to US in five years between 2004 and 2009 was to the tune of $5.5 billion, according to a study by Ernst & Young and Ficci.
A similar study by CII estimates that to achieve 9% GDP growth, India would require $2.7 trillion investment in the next five years, of which $1 trillion would have to be in the infrastructure sector.
Read more: $10bn just a blip, US sees $1tn opportunity in 20 yrs - The Times of India $10bn just a blip, US sees $1tn opportunity in 20 yrs - The Times of India
