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As ties warm, US mounts India business push

by Staff Writers
Washington (AFP) Feb 3, 2011
US Commerce Secretary Gary Locke heads next week to India on a mission to turn warming political ties into business -- especially, he hopes, in the lucrative area of fighter jets.

As part of President Barack Obama's push to fuel US growth through exports, Locke will spend six days in India accompanied by leaders of 24 US companies including major players in defense and nuclear power.

The trip -- the first by a US cabinet member to India since Obama's visit in November -- comes shortly after the United States ended most restrictions on sensitive technology exports to New Delhi, meeting a key concern.

Locke said that the United States hoped to seize on the opening and convince India that US business offered "a win-win opportunity" as the South Asian nation manages its rapid economic growth.

"Expanding our exports to India represents the kind of mutually beneficial trade that creates jobs in both India and the United States," Locke told reporters.

Locke said a "high-priority focus" would be to showcase fighter jets. India is looking to buy 126 multi-role aircraft to replenish its aging fleet in a deal likely worth at least $12 billion.

On Tuesday, Locke will visit the Bangalore air show with executives from the Lockheed Martin Corp., which wants to sell its F-16IN Super Viper, and the Boeing Co., which is promoting its Super Hornet.

The other contenders in the deal are the Rafale from France's Dassault, the Gripen NG from Sweden's Saab, Russia's MiG-35 and the Eurofighter Typhoon from a European consortium.

Ashley Tellis, an expert at the Carnegie Endowment for International Peace, expected that Indian leaders will face intense canvassing from other countries on the aircraft deal.

"Getting a foothold in the burgeoning Indian defense market is seen to promise larger long-term payoffs" as India plans more military purchases in years to come, Tellis wrote in a recent study.

But Tellis urged India not to try to please others by dividing up the sale, saying it was in the air force's interest to have a unified fleet.

Locke said he expected deals during his visit but played down the chance of big-ticket announcements, saying he was looking toward long-term business.

While the two nations have largely sorted out disputes over nuclear power and technology transfers, Indian business groups have been upset over last year's sharp hike in US visa fees for many high-tech professionals.

Locke voiced willingness to address India's concerns. He said that Congress determined the new fee as a way to fund security on US borders.

"I think it was unfortunate that that was the vehicle that was chosen to finance some of these measures for enhanced border security," Locke said.

"We need to work with the Congress to find ways in which we can raise the same amount" of money, he said.

Locke said he would also renew the case for India to loosen rules on large retailers such as Wal-Mart. Owners of India's ubiquitous small shops fear they will be put out of business if New Delhi eases requirements for foreign companies to partner with local firms.

The US commerce chief will get a taste of India's local businesses when he visits Mumbai, where he will meet with some of the legendary "tiffin-wallas" who wade through the metropolis's streets to deliver home-cooked meals.

Locke will be the first in a series of senior US visitors to India. Secretary of State Hillary Clinton and Homeland Security Secretary Janet Napolitano plan to head there in the coming months.



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