Robert O. Blake, Assistant Secretary, South and Central Asian Affairs of the US State Department, opened the session on trade today at the Asia Society’s Asian Corporate Conference in New Delhi with a keynote address on the strength and importance of the US-India relationship and the significance of India’s economic opening and role in the new world order.
Mr. Blake began by stressing the importance of the US-India bilateral relationship, economically, strategically, and socially. Trade has boomed in the last 20 years and continues to increase- India is the 14th largest trading partner of the US. Prime Minister Manmohan Singh is the only foreign leader since the beginning of the Obama administration who has visited the White House on an official state visit.
Mr. Blake credited much of the success of the US and India’s economic relationship to India’s policy opening in recent years. India has permitted foreign ownership of Indian companies, which has led to job creation as well as technology and knowledge transfer. Interest rate controls and other financial reforms have helped with liberalization, and there is hope that they will continue.
But more can be done. Not only should India seek to further increase market access to foster mutual prosperity, but such policies would certainly help domestic stability. Removing agricultural import barriers would help alleviate pressure on food prices. Barriers to infrastructure development would help ease social pressures caused by rapid urbanization. India must foster development of a long-term capital development market. Tariff and non-tariff barriers to trade can come down further.
Mr. Blake concluded by again encouraging India to open its economy further. This, he said, would help it take its rightful place as a world leader.