WASHINGTON: A top U.S. diplomat has said a bilateral investment treaty, currently being negotiated, is critical for deepening India-U.S. economic ties, and asserted that the US is committed to work with India to fully unlock the true potential of the businesses.
While the bilateral trade between the two countries has now reached $100 billion, Biswal said she believes that a target of $500 billion in bilateral trade is entirely possible.
"Currently, the U.S. and India are negotiating a BIT which will be critical to deepening our economic relationship, improving investor confidence, and supporting economic growth in both countries," Biswal said.
"A BIT will go a long way toward bringing our economies closer and reducing the friction that's only natural with two complex free-market systems such as ours. It will help us move past the choppiness that comes from not having an over-arching investment framework," she said.
"It will open up even more opportunities for American and Indian firms," said the top American diplomat.
She is the first Indian American to be made in charge of the South and Central Asia.
Bilateral investment flows have grown immensely with FDI into India from the U.S. reaching $28.2 billion last year, she said.
Cumulative Indian FDI into the U.S. has also grown remarkably, from a negligible $96 million in 2000 to $5.2 billion by 2012.