India, U.S. eye states to boost trade ties:

India, U.S. eye states to boost trade ties:

Context

• India and the U.S. are working on establishing a state-level engagement mechanism to widen and deepen bilateral trade and investment ties.

State Engagement Task force’ (SET)

• The U.S.-India Business Council (USIBC), will disclose within a fortnight a ‘State Engagement Task force’ (SET) ensuring American and Indian companies align their interests with the priorities of the State governments of both the countries.

Engagement for improving ties

• The move has come as India and the U.S. are set to carry out a comprehensive review of bilateral trade ties.
• Priorities sectors in the exercise will be defense and energy.

The main focus

• The focus in defence would include Lockheed Martin’s proposal to make F-16 fighter jets in India.
• There is also sale of General Atomics Aeronautical Systems Inc. or GA-ASI’s ‘Guardian Remotely Piloted Aircraft’ to India.
• Energy ties would be covering exports of U.S. natural gas, transfer of U.S. technology on oil and gas refining, as well as the conclusion of pacts between Nuclear Power Corp. and Westinghouse Electric for six nuclear reactors in India and related project financing.
• Smart cities are the other priority areas including Ajmer, Allahabad and Visakhapatnam.
• Regional airport development in India through public private partnership, e-commerce, digital payments and medical devices is also point of focus.

The four separate engagement channels

• Industry puts forward four separate engagement channels —

1.the comprehensive review of trade ties,

2.forthcoming trade policy forum

3.the bilateral ‘commercial dialogue

4.the Global Entrepreneurship Summit in November would be provided during the Global Entrepreneurship Conclave (GEC) being organized by the USIBC next month.