Chambers peg sixfold rise in Indo-US trade to $500 bn by 2020

MUMBAI: The US-India Business Council ( USIBC) and CII have set a target of achieving $ 500 billion worth bilateral trade by the turn of 2020 from the present level of $ 100 billion.

"In 2006, the US-India trade stood at a mere $ 25 billion. So long as oil prices remain stable and Europe continues to make progress, there is every reason the two-way commercial relationship between our nations can surpass the $ 500 billion-mark by the end of this decade," USIBC president Ron Somers told reporters at a CII event here.

India's market size, young population, and rising purchasing power are the factors behind such optimism, he added.

However, the USIBC pointed out that appropriate business environment should be maintained for attaining such massive growth figures.

"Vodafone kind of cases sent a wrong signal to the investors. It is a little regressive in nature. However, we believe this is one off case and the overall business environment will remain investor-friendly," Somers said.

Referring to difficulties in implementation of Indo-US civil nuclear deal, USIBC chairman Harold Terry McGraw said all outstanding issues relating to civil nuclear deal are being worked out.

Meanwhile, CII, the Indian counterpart of the US business association, said the issues relating to labour movement, opening of FDI in sectors like retail are some of the topics discussed with the US delegates and government.

"We are deliberating on issues like labour movement in the US, and opening of FDI in retail with the US delegates along with the government," CII-president-designate Adi Godrej said.

Raising concerns over the recent proposal to amend legislation retrospectively, Godrej said it sends a bad message to investors here and outside and CII will voice its concern in its next meeting with the finance minister next Sunday.