Photo: Wikimedia Commons
President Obama will spend four days in India accompanied by representatives of approximately 200 companies, looking to spur on business and trade.This trip is all about the U.S. and India getting down to business as the U.S. is anxious to get in on the country’s growth story.
Some of the top corporate brass in attendance include Jeffrey Immelt of General Electric, Jim McNerney of Boeing and PepsiCo chief Indra Nooyi.
But the deal-making has already begun, and with many big money agreements already in place, we can tell you what to expect from the visit.
Investments: Boeing, GE,
Why This Matters: India is one of the world's largest arms importers and is looking to spend $33 billion over the next five years to beef up its inventory.
The Details: Competing with Europe and Russia, the US hopes to sell 10 Boeing C-17 military transport planes, worth around $4.5 billion. GE hopes to sell fighter jet engines worth $800 million to the Indian air force.
Investments: Cummins, Eaton and Tata Motors
Why This Matters: May lead to future transport cooperation, expansion of natural gas industry.
The Details: Cummins and Eaton Corp worked with Tata Motors to produce natural gas hybrid buses for the Commonwealth Games. The buses have since been absorbed into the New Delhi transport system.
Investments: Reliance Industries
Why This Matters: India trying to get U.S. help to exploit its shale gas reserves.
The Details: India imports 75% of it's oil for energy consumption annualy and has discovered gas deposits in Assam and Gujrat. India's Reliance Industries forked over $1.7 billion to get a 40% stake in Pennsylvania's Marcellus Shale earlier this year.
Why This Matters: The U.S. currently resticts high-tech exports to India.
The Details: India is pushing the U.S. to remove such restrictions, connected to India's place on a U.S. list barring it from selling certain products. The ban comes from India's 1999 violation of the nuclear test ban treaty.
The Details: President Obama has faced flak at home about outsourced jobs and isn't visiting India's IT hubs on this visit. India is hoping he changes his stance. According to Michael Froman, deputy assistant to the president, Indian companies support 57,000 jobs in the US and is the second fastest growing investor in the US.
Investments: GE, Westinghouse
Why This Matters: India hopes to join the Nuclear Suppliers Group.
The Details: India is not a member of the Nuclear Suppliers Group, because it is not a signer of the Nuclear Non-Proliferation Treaty. There is a deal in place between the U.S. and India that allows for cooperation, but final details are not in place. Certain legislation India has passed could allow for legal complaints to be filed against supplying companies in the event of a failure.
Why This Matters: It may give the US what it's wanted for a long time: Increased access to Indian markets.
The Details: The U.S. government wants India to open up its infrastructure, retail and insurance sectors. The Indian government has just raised the cap allowing for $30 billion in investments by foreign institutional investors.
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