| On Day 1 of 3-day visit, US President promises to lift export curbs on hi-tech products. |
Our Bureau
Mumbai, Nov. 6
US companies and Indian firms on Saturday inked around 20 deals worth more than $10 billion. These deals will create over 50,000 jobs in the US, according to the US President, Mr Barack Obama. He was speaking to business leaders in Mumbai.
Mr Obama, who arrived herethis morning on a three-day tour of the country, also announced that the US will lift export controls on high technology products to India, to facilitate two-way trade between both the countries.
Addressing a gathering of Indian and US businessmen, organised by the US India Business Council, the President said “as we look to India today, the US sees an opportunity to sell our exports in one of the fastest growing markets in the world. For America this is job strategy.”
This is possibly more a message to his US voters than to Indian businessmen, in view of his loss in the recent elections there, said some business leaders who were in attendance. However, Mr Obama added that these deals are “significant to both our nations.”
The deals include one between General Electric and the Reliance Power worth $2.22 billion (Rs 10,000 crore) for supply of boiler, turbine and generating equipment to the Anil Ambani group's 2400 MW gas-based power project in Samalkot in Andhra Pradesh; and another a $ 2.7-billion deal between Boeing and Spicejet for sale of 30 B737-800 commercial aircraft to the low-cost airline.
Mr Dinesh Kerkar, President of Boeing, said this is part of a deal signed in October.
A sense of humour
Mr Obama was not without a sense of humour, he made an indirect reference to his own electoral loss. Referring to how the US and India were both strong democracies, he said: “Even if it's slow, even if it's messy, even if sometimes the election doesn't turn out as you'd like...” The audience appreciated his sense of humour.
At many points in Mr Obama's address there was loud applause from the audience, a collection of who's who from Indian business.
Eyes Indian Market
Referring to bilateral trade, Mr Obama said there is lot of scope for India to buy more goods from the US, which exports more goods to a smaller country like the Netherlands than to India.
On the relaxation in controls on US export of technologies which can be put to dual use by Indian companies, he said “We're reforming our export control system...today I'm pleased to announce we will work with India to fundamentally reform our export control system.”
“I've set a goal of doubling America's exports in the next five years ...As we speak American-made machinery is helping India improve its infrastructure including the Mumbai airport where I landed this morning,” he said.
Though he did not mention outsourcing, he said that the US policies are not targeted at India or any particular nation.
(The US has recently hiked H1B and L1 visa fees which are estimated to create an additional burden of $200 million for Indian software companies operating in the US. There has been much criticism that Indian IT companies have taken away jobs from the US and that the hike in visa fees was targeted at them.)
Earlier in the day, Mr Obama visited the Taj Palace Hotel for a memorial service for the persons who lost their lives in the terrorist attacks in November 2008. He met with some of the employees and survivors of that attack. Later, he visited Mani Bhavan, Mahatma Gandhi's place of residence on his visits to Mumbai during the Indian Independence movement.
Sunday programme
On Sunday, the US President celebrates Diwali with students at the Holy Name School, Colaba, following which he also visits an agricultural exposition and the open government and technology exposition at St Xavier's College.
His last stop is an hour-long meeting with the students of St Xavier's College. Mr Obama will leave for New Delhi on Sunday after-noon.
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