US Senator Sam Brownback has called for a free trade agreement between India and the United States, even as he warned that a part of the foreign direct investment flowing into China might end up in modernising its military and threatening global security.
Saying economic cooperation between India and US 'must improve and improve quickly,' he said that China continues to attract foreign direct investment several times more than India. "China continues with its reforms programme. It is also further opening up its economy," he said.
Since 1980, China has attracted FDI of about $386 billion, while India has attracted only $18 billion. And in 2000-01, the trade between China and the US stood at $116 billion, while bilateral trade between India and America was a meagre $14.4 billion.
Brownback warned that a part of the massive American investment flowing into China could end up in modernising of the Chinese military, which is a 'threat to both India and the US.'
He stressed upon the need for more FDI into India, but said that to get Americans to invest in India, the government needs to quicken the pace of reforms, remove high tariffs and do away with other impediments.
He said the reforms process would benefit the Indian economy, create more jobs and help alleviate poverty, and also to garner more FDI. "But if the impediments remain, Americans will find other markets to invest in," he cautioned.
He gave a three-point suggestion for improving the Indian economy and attracting more investment from the US.
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Make more reforms to engage global economy.
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Go out and bring trade investment.
- Start discussions of a free trade agreement between India and the US to jump-start bilateral economic relations.
Senator Brownback, after whom the 1999 amendment to withdraw sanctions against India was named, said the US continues to put pressure on Pakistan over abetting terrorism. He said he had personally called up Pakistan President Pervez Musharraf asking to him put an end to cross-border terrorism.
The US has 'no better partner' than India in its fight against terrorism, he said. America's focus on Iraq is part of a 'sequentially' planned US war on terrorism, he added.
