Speeches & Articles

Remarks
Consul General Beth A. Payne
“USA – TRADE & BUSINESS OPPORTUNITIES FOR WEST BENGAL”
Merchants Chamber of Commerce
Kolkata, November 4, 2008

November 4, 2008

Mr. Anupam Shah, President of Merchants Chamber of Commerce
Dr. Sabyasachi Sen, Principal Secretary, Depart of Commerce & Industries
Mr. Subrata Gupta, Managing Director, WBIDC
Members of the Merchants Chamber of Commerce,

Ladies and Gentlemen,
“Nomashkaar”

Thank you for inviting me to speak to you today and I am delighted to be among such a distinguished group of businessmen and women.  I’ve come to Kolkata at a time when ties between the United States and India have never been stronger.  Our two great democracies have overcome past differences and are charting a new course for the future.

Trade and commerce form a crucial component in the rapidly expanding and multi-faceted relations between India and the United States.  Bilateral trade in manufactured goods reached over 41 billion dollars in 2007 and is estimated to grow to over 50 billion dollars in 2008.  The U.S. is India’s largest trading partner.  In 2007, U.S. exports to India registered an increase of 75% from the previous year while exports from India to the US grew at over 10%.

West Bengal has discovered the U.S. market and exports engineering goods, leather products, jewelry, and agricultural products to the U.S.  In all of these industries West Bengal has a distinct competitive advantage.  My personal favorite export is mangos from West Bengal – easily the best mangos in the world!  Despite the current global economic crisis, there are still a lot of potential markets for products from West Bengal in the U.S. markets.  A local exporter told me recently that he just signed a major contract to export manufactured products to a U.S. firm.

For those of you who would like to export products to the U.S., it is important to be aware that the U.S. is a vast, complex market and buyers place a premium on product quality.  If you are planning to export to the U.S. market I recommend that you do your research, learn about potential demand for your product, study trends specific to the U.S. market, and learn about the rules and regulations associated with importing your product into the U.S. 

Where do you find this information?  The commercial section of the Indian Embassy in Washington DC is an excellent source of information and their commercial officers can assist you if you are new to the U.S. market.   You could also approach the Kolkata office of the Federation of Indian Export Organizations (FIEO) for assistance.  FIEO is the apex body of all export promotion organizations in India, set up by the Ministry of Commerce, Government of India. 

Their website www.fieo.org is a useful source of information on how they can assist Indian exporters with their market promotion activities and it provides links to various industry and trade bodies across the world.  Some of your fellow members of this Chamber may also be able to provide you with valuable advice drawn from their first hand experience of exporting to the US.

If you are looking to import products from the U.S., the Foreign Commercial Service (FCS) here at the U.S. Consulate in Kolkata can provide assistance.   FCS’ primary role is to help U.S. exporters enter the Indian market and facilitate US-India joint ventures.  They help U.S. businesses by educating them on local procedures, arranging meetings and providing critical support during the initial phase of assessing the viability of doing business in West Bengal and the other states of eastern India.

A significant component of U.S.-India trade is in services, particularly IT, banking and financial services.  Indian IT services companies in Kolkata’s Salt Lake area rely heavily on American clients while U.S. companies like IBM, Cognizant and Skytech Solutions Banking have come here to take advantage of the availability of a well educated and reliable work force.   American Express, Bank of America and Citibank, as well as accounting and consulting firms like PriceWaterhouse Coopers, Deloitte and KPMG International are also doing business here.

We see a lot of potential for U.S. businesses to work with firms in West Bengal in sectors like infrastructure, especially airport modernization and port development, and in the power sector – particularly in clean coal technologies, hydropower and other forms of renewable energy.  Food processing, chemical industries and sunrise sectors like biotechnology also provide great opportunities for closer cooperation.

As I speak with satisfaction of our growing business collaborations, I must take a moment to recognize that they are based on the foundation of India's economic reforms over the past 15 years, reforms which have sparked tremendous change and growth. Over the last few years, the Government of West Bengal has also adopted economic reforms and welcomed foreign investment.  By implementing policies that encourage private sector initiatives and economic growth, the government has created an economic environment that is attracting attention from the U.S. business community. 

American businesses know that West Bengal has a lot to offer.  It has a good network of railways, road and port facilities, and its power situation compares favorably with that in other parts of India.  West Bengal’s workforce is one of the best educated in India and has one of the lowest attrition rates.  And the cost of living in Kolkata is lower than in other major Indian cities. 

However, American investors are also looking for stability, transparency, rule of law and, most important, a respect for agreements and contracts.  American investors are watching closely how the government resolves issues surrounding land acquisition for large investment projects, and would like to see signs of assurance that future investment projects in this state would be free from disruptions caused by political disagreements. 

Talking of global trade and investment and economic linkages, I would like to touch briefly on the current global financial crisis.  This crisis is rooted in a combination of factors, including a decade of benign economic conditions, investor and lender complacency towards risk, and increasingly loose credit standards and lending practices. 

The U.S. Government has taken systematic, aggressive, bipartisan measures to protect the financial security of the American people and the global community.  As President Bush has said, these are decisive measures aimed at the heart of our financial challenges.  We are committed to using all necessary tools to support our financial markets and institutions.

It is also worth noting that some of these measures - notably the U.S. Government’s acquisition of shares in U.S. banks - are limited in scope, scale and duration.  They represent an extraordinary response to an extraordinary crisis.  These reforms are a means to strengthen, not undermine our free market system.

Every country is sharing the impact of this current crisis.  Given the interconnected nature of global capital markets, the U.S. has cooperated with its international partners to restore the health of financial markets.  The U.S. will continue to promote open markets and open investment as the surest means of advancing both U.S. and global economic growth.  Many of our international economic partners also have reaffirmed their belief that trade liberalization, openness, and market-oriented policies remain the key means of promoting global economic growth. 

India too has benefited from trade liberalization and the increased openness of its economy.  India’s trade in goods and services is now almost equivalent to 50 percent of its GDP.  In the last four years alone, more than 13 million new jobs have been created due to increased trade activity, thus re-affirming that increased trade is a valuable instrument to foster economic growth and generate employment.

As the Indo-American relationship grows closer, trade and business opportunities between the U.S. and India will continue to expand.  I have already mentioned that India and the U.S. are both great democracies.  And being governments of the people, I am confident that both communities have the will and determination to continue to strengthen the economic engagement between our countries. 

I look forward to answering any questions that you may have.  Thank You.