U.S.-India Business Council Annual Meeting - remarks by U.S. Chamber of Commerce President and CEO Thomas J. Donohue

On: U.S.-India Business Council Annual Meeting
To: U.S.-India Business Council
From: Thomas J. Donohue
Date: June 8, 2004
 

U.S. Chamber of Commerce
June 8, 2004

Dr. Clark, Mr. Sood, Ambassador Mulford, Chairman Gupta, members and friends of the U.S.-India Business Council:

It gives me great pleasure to welcome you all to the U.S. Chamber of Commerce for the 29th Annual Meeting of the U.S.-India Business Council.

Welcoming you to this program has new meaning for me. As many of you know, I visited India for the first time in April of this year.

It was a fascinating experience that strengthened my belief that India and the United States greatly depend upon each other, and will continue to do so in the future.

I also came away knowing that India needs, and is working hard, to further integrate with the global economy to provide the economic opportunities necessary to reduce poverty.

The contributions of Indian engineers, doctors, scientists, and entrepreneurs are justly celebrated in this country.

But by going to India I found that things there are changing in ways that will allow India's highly talented people to employ their skills at home.

In fact, Indians are as ready as any people I have met in my global travels to take up the reigns of entrepreneurship and build their country's economy.

In April, I first visited the capital of New Delhi, and then, Bangalore in the South. Accompanied by board members Steve Van Andel and Edward Wanandi, as well as Michael Clark and Ingrid Belton from the U.S.-India Business Council, we met with government, business, and media leaders at the highest levels.

Even though India was in the midst of very interesting national elections, we were able to meet with several high level officials, such as the Prime Minister's chief policy and national security advisor, several economic ministers and secretaries, and more than two dozen CEOs of India's finest companies.

We were told that India will not veer from the path of opening markets, upgrading the infrastructure, and clamping down on counterfeiting and intellectual property rights violations.

In fact, we were told to expect a "second generation" of reforms after the Indian elections.

Let me add that while no one seems to have predicted the outcome of the elections, or the change of government that followed, the prediction that reform would continue seems to be holding up.

I look forward to hearing more about the new government's plans, and to working with Indian leaders of all stripes who share our commitments to economic freedom, democratic process, and rule of law.

During our visit, we also sensed a good degree of optimism that the current peace initiative underway with Pakistan was for real, although the next several months will be critical.

We responded by acknowledging the progress India has made to open its markets but we also stressed that more needs to be done.

Tariffs are still way too high and the limits on foreign investment are too restrictive.

The lack of infrastructure development will indeed hold back the country's aspirations if not addressed - especially in the areas of roads, energy, water, seaports, and airports.

We also welcomed the message about the peace initiative and emphasized a fundamental reality - that continued serious tensions between two countries with nuclear capabilities would inevitably deter foreign investment and participation in the Indian economy.

We also noted that there are several disputes between Indian government authorities and foreign companies—including U.S. energy companies—that must be resolved.

The reason these "legacy issues" must be resolved is simple: Companies will not go where they have reason to fear they will not be paid.

While in India, I met with the leadership of India's two major trade associations, CII and FICCI.

I found that our organization and theirs' had mutual interests in a variety of areas, and I promptly signed memorandums with each to work on key issues.

With CII, we are undertaking the U.S.-India Trade Development Partnership.

The purpose of this public-private partnership initiative is to leverage existing resources in both countries.

By jointly organizing a 12-month campaign to highlight—for companies of all kinds and sizes—the opportunities that are opening up in both countries, we hope to accelerate bilateral trade and expand the base of political support for mutually beneficial U.S.-India relations.

In particular, by providing easy access to timely information, market conditions and opportunities, and opening doors to trade finance, we hope to enable small and medium sized companies in both nations to capitalize on export opportunities for their goods and services.

With FICCI, we are undertaking a joint initiative to combat Counterfeiting and Intellectual Property Theft in both countries and around the world.

The purpose of this initiative is to share information on the activities being undertaken in both countries to combat piracy, and share advice on how best to combat it.

We also plan to jointly organize a major conference later this year or early next, when I plan to return to India, to focus national and international attention on the enormous impact of piracy and counterfeiting on companies and societies around the world.

I pointed out on several occasions during our visit that I am convinced India has a spectacular opportunity to surpass all other transitioning and developing countries.

More than most, India has demonstrated that it is a producer as well as an avid consumer of new knowledge and intellectual property.

But even more important, it has a rule of law in place for the protection and enforcement of intellectual property rights that no other emerging nation enjoys.

That's why I was delighted to discover that the Chamber and FICCI were working on parallel tracks, and why I am very pleased that we are already working to coordinate efforts, beginning with a meeting held here with Dr. Mitra and several leading companies and senior U.S. officials yesterday.

As you might expect, the issue that dominated our trip and our discussions was worldwide sourcing.

We shared our recent report on the subject, and I was pleased to tell them that the Chamber and our allies are making very good progress in fending off punitive legislation at the state and federal level.

The battle is far from over, and we have a long way to go in this U.S. election season.

But our friends in the media are recognizing the points that we are making, and politicians across the country are saying, "Let's try to understand this better before we make rash decisions."

Our visit to Bangalore afforded a special opportunity to see first-hand where much of the new economic relationship between India and the U.S. is developing.

What did we see? Highly educated, well-trained Indian young people manning call centers and performing back office tasks for clients all over the world - including some U.S. clients.

But we also saw that virtually all the equipment they were using is American-made. In fact everywhere you look, you can see a major U.S. presence in terms of our products, services, expertise, and technologies.

Ladies and gentlemen: India has the largest middle class in the world, a highly educated workforce, and a democratic system with a rule of law.

It has a young population, eager for work, which can help fill our future workforce needs as our own society and many others around the world grow older.

The bottom line is simple.

We can either view India as an economic threat, pushing it away, and ceding this immense market to our competitors.

Or, we can see it for what it really is - an extraordinary opportunity for our companies, our workers, and our country.

I look forward to working with all of you, Indians and Americans alike, to unlock the enormous potential for good that lies in the collaboration between our two great nations.

Thank you.