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India, US to resume talks on bilateral investment treaty: Modi
India will resume its dialogue on bilateral investment treaty with the
US as the economic growth in both countries is becoming stronger, Prime
Minister Narendra Modi said here Sunday.
"President (Barack)
Obama and I have agreed that a strong and growing economic relationship
is vital for the success of our strategic partnership. Economic growth
in our two countries is becoming stronger. Our business climate is
improving. In addition we have established a number of effective
bilateral mechanisms to identify opportunities and also help our
business, trade and investments more," he said at a joint press meeting
with Obama after their talks.
"We will also resume our dialogue
on bilateral investment treaty. We will also start discussions on social
security agreement that is so important for the hundreds and thousands
of Indians professionals working in the US," Modi added.
Obama
said: "Our economic partnership has grown and our economic partnership
will improve daily lives of our people. We have identified the bilateral
investment treaty to discuss further."
"The prime minister has
informed me about his missions of economic prosperity to improve the
lives of rural Indians with bank accounts, clean water and clean air. We
are working on providing assistance to all these," he added.
Obama welcomed Modi's recent reforms to ease doing business in India.
"Since
my last visit here and the address made to your parliament, trade has
increased and we are cooperating on key global challenges. In the last
few years the trade between our countries have increased by some 60
percent and it is going towards $100 billion and we want to trade even
more," he said.
According to various Indian industry bodies and
trade estimates, Indian-American bilateral trade is poised to reach $100
billion mark by 2018.
Commerce ministry data shows that India's
exports to the US have risen from $9 billion in 2001-02 to around $39
billion in 2014-15, with the US remaining India's top export destination
throughout the years.
Import-wise, the US has registered a steep
rise from $3 billion in 2001-02 to $22 billion in 2014-15. Overall,
bilateral trade between India and the US rose five-fold from $12 billion
in 2001-02 to $62 billion in 2014-15.
During 2000 to 2013, the
cumulative foreign direct investment (FDI) flows from the US to India
were estimated at $14 billion - constituting nearly six percent of the
total FDI into India.