Speeches & Remarks
OFFICIAL TEXT
February 20, 2012
Remarks by Under Secretary Francisco Sánchez
Indo-American Chamber of Commerce Luncheon Meeting Monday, February 20, 2012 Chennai, India
As Prepared text
Good afternoon and Vanakkam. Thank you so much for that generous welcome.
A special thanks to Consul General McIntyre for that kind introduction and — more importantly — for her distinguished work.
Allow me to also thank Raman — your Chairman — for his leadership and achievements.
Finally, I want to express my gratitude to all of you with the Indo-American Chamber of Commerce. I thank you for your decades of service. I thank you for strengthening the commercial ties between our two countries. And, I thank you for hosting us today.
This is the first opportunity I’ve had as Under Secretary for International Trade to visit the great coastal city of Chennai. Although I’ve only been here a short time — I’m so impressed by the vitality … the energy … and the sense of community.
I know that Secretary of State Hillary Clinton visited here last year. And I’d heard that — as part of her trip — she saw a performance of classical South Indian dance at the Kalakshetra Foundation.
So I knew that the culture here was special. But, it’s been great to see it with my own eyes. It’s made a lasting impact on me. And it’s great to be back in India.
I know a number of U.S. Government officials have made trips to India in recent years. I hope you aren’t getting tired of seeing us. In all seriousness, there is a reason we keep coming back.
It’s because — as President Obama said during his state visit in 2010 — “the partnership between the United States and India will be one of the defining partnerships of the 21st century.”
Why? Because India has emerged as an economic leader. Its 1.3 billion people are among the most creative and innovative in the world. And our two countries share similar goals — expanded opportunity … greater prosperity … and thriving economies.
So it makes both business sense and common sense for us to help each other achieve these goals. From our vantage point in the United States, I can tell you without hesitation that we want to be a part of India’s growth and future. And that’s why I’m here today.
I’m leading a delegation of 12 U.S. companies that are looking for business opportunities and joint project initiatives with companies here.
And in the days ahead — we are going to be meeting with a wide-range of representatives from government and business to explore the possibilities.
And the good news is that we aren’t starting from scratch. Instead, we are building on an already solid foundation. In 2011, bilateral trade in goods between India and the United States was nearly $58 billion dollars.
This is up from roughly $49 billion in 2010.
So the economic activity between our two countries continues to grow. And behind the numbers, we are seeing a lot of great things happening.
Major U.S. companies like Cisco … General Electric … and IBM are placing research and development facilities here in India — utilizing the great talent of local engineers and scientists to enhance their businesses.
India is quickly becoming a home for the world’s capital … for talent … and for innovation. It’s a remarkable story of progress.
Especially considering that back in 1991, it was a completely different story. One that was defined by a closed economy with low growth.
But then Finance Minister Singh stepped in. He saw a different future for India. One with an open economy that allowed people to flourish. Since then, trade barriers and tax rates have fallen.
State monopolies were broken up. The license raj was greatly diminished. And the results speak for themselves.
Annual growth rates of 8 to 10 percent are now common. Indian companies like Tata … Wipro … and Reliance have become known all over the world.
Plus, there are now 45 million Indian entrepreneurs — many of whom are leading small businesses — who are actively working to turn their ideas into the next great international success.
All of this is contributing to the growth of a middle-class that’s now as big as the entire U.S. population. And, this growth looks like it will continue for years to come.
Morgan Stanley has predicted that India will grow faster than any large country in the world over the next 20 to 25 years.
It’s an exciting time. But with the excitement comes challenges. As India’s economy grows — so too does its infrastructure needs.
The current infrastructure network isn’t strong enough to support India’s emergence. Just 2 percent of the roads are paved highways.
And, improvements are needed across the board. Indian businesses cannot be competitive in this environment.
They can’t transport good in a timely manner — if they can even ship them at all. This means lost sales and lost opportunities.
Investments are clearly needed. That’s why I was glad to see the announcement last year by the Government of India. $66 billion for the port sector. And $27 billion for the shipping sector.
This will reportedly increase India’s port capacity from 1 billion tons to 3.2 billion tons by 2020. This will obviously bring tremendous benefits to Chennai’s future, creating a healthy channel to transport goods to overseas partners. And, the 12 U.S. companies with me today are ready to help build this future with you.
These firms produce state-of-the-art cargo handling equipment, port security, and maritime technology equipment. Their products and services are among the best in the world. They’ve done great work in America and across the globe. And, they’re ready to do great things here in India. They’re ready to help India meet its infrastructure needs. They’re ready to help India build for the future. And — in turn — these partnerships will benefit the American economy as well.
As many of you know — in 2010 — President Obama announced the National Export Initiative. The goal is to double U.S. exports by the end of 2014.
Why? Because exports strengthen businesses.
And, strong businesses put people to work. Which then fuels economic growth. So this trade mission will bring benefits to both our countries.
This leads to stronger commercial ties. And, more opportunities for both of us in the future.
Unfortunately, there are a few obstacles that prevent us from fully seizing these opportunities. Specifically, I’m talking about policies that favor domestic firms over international firms.
Sure — in the short-term — these efforts may protect industries here. But in the long term these policies will hurt India’s growth.
They scare away foreign direct investment. They discourage imports. They limit economic development. In fact, history is clear.
When countries create unnecessary barriers — their businesses and consumers are eventually deprived of the world’s most cutting-edge technology.
On the other hand, when countries open their markets to foreign goods, competition increases for everyone:
- driving innovation;
- reducing costs;
- and fueling economic growth.
For example — the U.S. is the world’s most open economy.
Companies know that when they do business on our shores — their ideas will be protected — and they will have a fair shot to compete.
And these are reasons why we are the number one destination of foreign direct investment.
So, I look forward to working with representatives from the Indian government and business community to discuss these issues.
We’ve come a long way together. If we look back, we should be proud of the progress that’s been made.
Now we must look forward and ask ourselves — what can we do to bring new opportunities … new jobs … and new growth to both our countries?
To me the answers are clear. We must work together. We must grow together. And, we must build together.
And by “build” — I mean building new partnerships — to build new infrastructure — and build stronger economies for both our peoples.
My goal is for these partnerships to begin today.
So, I’m going to stop talking. So that all of you can start talking — and partnering for progress.
And, I look forward to working with all of you to increase cooperation and prosperity for India and the U.S. in the years to come.
Thank you.