There is an ever-increasing warmth between these two countries, which is economically and politically beneficial to both parties. While those of us who are readers of The Internationalist Page Blog or just categorically Internationalists, this is a bit ironic because India has been a substantial outsourcing destination for U.S. companies and is occasionally maligned for "taking jobs away from Americans." While in a sense this might be true, the savings (arbitraging the cost of Indian labor against the much higher cost of American labor) to certain U.S. companies has helped to keep them in business in a time of extraordinarily low capital availability, and has saved some employees by keeping their employers in business.
India is also becoming more of a consumer market, and some United States companies are offsetting the outflow of dollars to India by selling U.S.-produced products to the growing middle-class in India's confusing but nonetheless fast-emerging economy.
In terms of politics, both countries have their concerns about the spread of radical Islam and terrorism from Pakistan, Afghanistan and other nations in the region.
While the cultures are quite different, both countries have some serious security and economic concerns in common, making them wonderful international trade partners.
The's a definite warming up of relations on all fronts between the two nations.
This warmth is signified (in a monetary marriage) in an excerpt below from Chairman Fred Hochberg's Quarterly Ex-Im Newsletter Report:
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Ex-Im Bank Signs $500 Million Agreement with ICICI Bank
Chairman Hochberg traveled to
India in January on a business-development mission. While in India, the
Chairman signed a $500 million Memorandum of Understanding (MoU) with
ICICI Bank pledging cooperation on financing projects beneficial to
both India and the United States. Up to $500 million in new
transactions could be financed as a result of the initiative.
ICICI Bank is India's largest
private sector Bank and this MoU will support the financing of U.S.
goods and services by ICICI Bank's customers. Ex-Im and ICICI Bank see
specific opportunities in air traffic control and infrastructure;
railway; urban metro and port development projects; power generation,
including renewable energy; oil and gas projects; and water treatment
projects.
"India is an emerging market that provides enormous opportunities for U.S. companies," said Chairman Hochberg. "This
$500 million MoU represents a partnership between our two countries
and will help ensure that American companies and workers help India
meet its growing infrastructure needs, while creating jobs here at
home."
Speaking on the occasion, Chanda
Kochhar, MD & CEO, ICICI Bank said, "ICICI Bank is pleased to be
working with the U.S. Ex-Im Bank towards the growth of India-US trade.
This MoU combines the strengths and expertise of both our institutions,
helping U.S. Ex-Im to leverage ICICI Bank's strong corporate
relationships and project finance capabilities, and ICICI Bank to offer
diverse funding options to its clients."
Ex-Im Bank's authorizations in
India continue to increase dramatically, bringing the Bank's total
exposure to India to $8.5 billion as of the end of the first quarter in
FY 2013. India is currently the Bank's second largest market in terms
of overall exposure. Last year, US Ex-Im Bank financed 17 percent of
all U.S. exports to India.
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As a trend-spotter and the Author of The Global Futurist Blog, I would expect this warming trend to continue over the next several years. Personally, I am hoping it will. Both countries can help each other, and the U.S. needs to cultivate some genuine allies in the region.
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