The US’s largest manufacturing association, which had spearheaded an aggressive campaign against India’s economic policies over the past year or so, has decided to reverse course and work with the Narendra Modi Government in the hope of a major push for reforms under his stewardship.
“Manufacturers in the United States are optimistic that we have before us an important opportunity to put the US-India economic relationship back on track,” said the National Association of Manufacturers (NAM), referring to Modi’s pro-growth campaign thrust, inclusive of reforms to attract foreign investment.
lauding Modi’s accomplishments in Gujarat, NAM president and CEO Jay Timmons said at an event here on Wednesday that his organisation “stands ready to work together with the Indian Government and the Indian business community to share our experiences and best practices as well as work with our own Congress and trade representatives”.
At the same gathering, Senator Mark Warner, the Democratic co-chair of the Senate India Caucus, highlighted the significance of India’s election mandate and the opportunities it presents, among others, for resetting and restarting the US-India relationship.
In contrast to its softer tone now, the NAM had led a shrill campaign for more than a year in tandem with other groups representing Corporate America. It prompted over 200 lawmakers of both parties to approach the US International Trade Commission, which instituted a unilateral inquiry into India’s economic policies last August, purportedly discriminating against US trade and investment.
“India’s recent elections, however, offer hope that the world’s largest democracy may embark on a new era of reform and economic openness,” Timmons said, adding: “With an outright majority in parliament, Modi and his Cabinet have an unprecedented opportunity to promote reform and growth throughout India.”
If the new Government unleashes requisite reforms with respect to trade, investment and innovation, it will be a win-win for both Indians and Americans, Timmons said, commending Modi’s setting of a 10-point plan and 100-day agendas.
“While much of the new government’s focus will be on the domestic economy, Prime Minister Modi’s victory is a vital moment for US and Indian leadership to chart a new path forward in our bilateral relationship.
For example, it is critical that we see a serious and timely resumption of constructive economic dialogues between the United States and India,”he said.Noting that the US-India Trade Policy Forum has not met since 2010, Timmons said the next meeting needs to take place soon and engage economic leaders from both countries.
“Of course, India and the United States won’t see eye to eye on every issue. That’s not unusual. It must, however, become normal in the US-India relationship to talk about those differences and work through them, not avoid or ignore them,” he said, adding: “If India chooses the path of dialogue, reform and full engagement with the global economy, there are many areas where manufacturers believe that collaboration is possible.”
Stating that American manufacturers want to see a stronger and more robust Indian economy, Timmons said: “By working together on trade, investment and other issues, we can grow both our economies in a fast-paced and globally connected world economy.” According to him, the coming weeks and months “will be pivotal to India’s path and the direction of our bilateral relationship”.