The Hindu : Business : American Chamber's plan to boost business cooperation

Online edition of India's National Newspaper
Friday, Jan 28, 2005

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American Chamber's plan to boost business cooperation

By Our Special Correspondent

CHENNAI, JAN. 27. The American Chamber of Commerce in India (AMCHAM), an association of U.S. business enterprises in India, is keen that the foreign direct investment from the U.S. reach $50 billion by 2010. Currently, the FDI flow from the U.S. is in the vicinity of $20billion, forming a quarter of the total FDI flow into the country.

Addressing select presspersons after the board meeting here today, Sunil Mehta, Chairman of the AMCHAM, said this was within the realm of possibility if there existed a proper public-private participation. Fielding a range of questions, Mr. Mehta expected the new budget to provide directional movement for continuation of reforms and lay out strong base for consistent GDP (gross domestic product) growth.

Mr. Mehta said the Chamber had drawn up a five-point objective to facilitate greater business co-operation between the two countries. The Chamber, he said, would strive to step up FDI flow, increase the two-way trade, enhance local engagement, provide platform to address India issues in the U.S. and develop corporate social responsibility.

Mr. Mehta said the Chamber was planning to open chapters in Kerala and West Bengal, two key states where large U.S. investments had come in. "We see an interesting change in West Bengal,'' he said. "Both states have taken steps to attract manufacturing industry,'' pointed out David Friedman, the head of Tamil Nadu Chapter of the Chamber.

Mr. Mehta said a delegation called on the Chief Minister of Tamil Nadu. "We had an exceptionally good meeting with the Chief Minister,'' he said. The Chamber team impressed upon the Chief Minister advantages the state had in terms of extensive coastline, rich resources and quality manpower and offered to collaborate with the State Government to increase the American FDI flow into the State. The Chief Minister, he said, wanted AMCHAM to explore ways and means of beefing up the technical education quality in Tamil Nadu. Asked if the Chief Minister had listed out her priorities to the Chamber, he replied in the affirmative. In this context, he informed presspersons that the Chief Minister listed out power, water, infrastructure and quality of education as priority concerns.

Stating that several Fortune 1000 companies had already set up bases in Tamil Nadu, Mr. Mehta said the Chamber was keen to look at the next level. ``There are several small and medium enterprises in the U.S. who are present in other Asian countries but absent in India,'' he said. The Chamber could work with them — especially those in the auto ancillary area, and facilitate their entry into Tamil Nadu, he pointed out. The Chamber team had also impressed upon the Chief Minister that "resolution of legacy issues in power generation and a conducive regulatory structure'' would revive the interest of foreign investors in the power sector.

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