To majorly enhance business ties between the two countries, industry body USIBC has proposed to the White House an India-specific Economic Cooperation Agreement and the setting up of a $50-billion sovereign debt fund in collaboration with India.

The agreement, its proponents have argued, would be unprecedented in terms of the economic cooperation for the US with any countries so far — something on the lines of the nuclear deal that changed relations between India and America.

Five-point proposals

These suggestions are part of five-point proposals that USIBC has put forth to the Obama Administration, which it says are achievable goals in mid-term and will reinvigorate the bilateral economic ties.

Topping the list is a $50-billion sovereign debt fund, with collaboration between India and the US; a unique NASDAQ-like exchange in Bangalore and massive collaboration in energy sector including shale gas technology to help India address its energy challenges.

The brief contours of these five-point, mid-term achievable were recently communicated in a confidential letter to Mr Mike Froman, Deputy Assistant to the President and Deputy National Security Adviser for International Economic Affairs, by Mr Harold “Terry” McGraw II — the outgoing Chairman of US India Business Council (USIBC).

PTI has obtained a copy of the letter dated March 26.

USIBC has entrusted Peterson Institute for International Economics, a Washington-based think tank to prepare an initial report on the proposed India-US Economic Cooperation Agreement.

A top Peterson Institute official had last week told the visiting Finance Minister, Mr Pranab Mukherjee, that the think-tank is preparing a report on this with USIBC and would like to submit it to him once it is complete.

“Moving forward on having the private sector activate studies on both sides to flesh-out the contours of an Economic Cooperation Arrangement is another area that would excite business involvement,” Mr McGraw told Froman.

Related Topics