Prime Minister Manmohan Singh's visit to the US could greatly enhance economic ties between the two countries, industry body PHDCCI said on Monday.
India's recent efforts to engage the US in newer areas like joint defence production is bound to provide renewed impetus for enhancing bilateral trade, which is expected to grow 30 per cent this fiscal to $28 billion, the chamber said in a release.
Besides trade, co-operation in the IT sector could be further strengthened by this visit, the chamber said, adding India should also view the opportunity to benefit from accessing the US software market.
USA is India's largest trading partner. Bilateral trade in merchandise goods increased from $5.6 billion in 1990 to $21.65 billion in 2004.
India is the 18th largest exporter to US and the 24th largest export destination for US. PHDCCI said it was time for both the countries to move towards a free trade agreement, starting with services only but ultimately covering other aspects of economic activity like investments and joint ventures.
The Prime Minster's visit has the potential to create more awareness across the US about India being one of the fastest growing economies and its new capabilities as the emerging global economy, the chamber said.
USA is the largest investing country in India in terms of FDI approvals, actual inflows, and portfolio investment. US investments cover almost every sector in India, PHDCCI said, adding India's investments to US have also picked up in recent times.
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