tv Indian Business Representatives Discuss U.S.- India Economic Ties CSPAN June 6, 2016 10:00am-11:31am EDT
reports are available on their website, the amount of military spending about those different performances. time for just one more call. robert in maryland. can you make it quick? caller: i sure can. i'm a u.s. taxpaying citizen and i was wondering why it we are doing all these budget cuts on our own. why can't we cut aid going to foreign countries a couple billion dollars? that would pay for the bands and much else. our last caller on today's washington journal. i want to thank ellen mitchell of politico for joining us. live to the you now center for strategic and international studies holding a summit today on u.s.-india economic relations. that summit coming ahead of the prime minister of india's visit to a joint meeting of congress happening later this week.
>> we were joking that it feels it must be a gallagher conservator's everybody is staying out of the first two rows. the back is getting filled up see you can move forward. a self is rick rosso that a senior fellow at the center for strategic international studies. for those of you who are veterans, i will mention that i am your security officer here at csi s area in case we have a or locusts, you see me raise my hand and allah me in an orderly fashion and go across the street.
we are here to talk today about previewing the visit to washington, d.c. by prime minister narendra modi'si. and we are pleased to have you all here. you look at later today and air india o ne will arrive in washington, d.c. in you will see a visit to arlington cemetery and meetings with think tanks. there are many functions. it's his fourth visit to the united states after becoming prime minister. these bilateral summits, the questions we get our what's the significance or importance about these meetings?
if we don't see a nuclear agreement like 2005, was it a successful visit? that's a hard measure. have a frequent engagement between the two is the reason and indicator of progress we have seen and a wide range of fronts. u.s.-india relations today are probably the strongest you could say they ever have been. probably more so on the defense and security side. last year, with the release of division,strategic the initial nation does the initiation of projects and the up rate of the 10 year defense framework, you have a coming together at high-level principles regarding our security partnership. less on the economic side. the numbers there are pretty good. india is the fastest growing largest economy in the world. india is the largest destination for foreign direct investment among emerging market so the numbers are pretty good.
i think the perceptions and what you see written publicly, has modi done up reform and is there enough happening on the ground -- at the same time from the u.s. perspective coming when you think of a leader summit, the united states and india remain deeply divided on global trade issues. you don't see koppelman previews and we are not part of the same trading blocs and are on attempts to negotiate trade are further away today than they were years ago when we first announced our attention to negotiate a treaty. both governments change the model which they did negotiations since that time. a summit may be unlikely to bridge the divide of global trade matters but it will point us in the right direction. i am pleased to have such a great panel to join me. this is a preview on what we might expect to see during this visit as well as perceptions to
further our engagement. let me start with the person to my left, naushad forbes, cochairman of forbes marshall which is india upon leading trade organization and has roots in the united states. professor at stanford university. ,ex to him is shobana kamineni the executive vice president of pollen optical. she is busy building out some of the hydro businesses apart from the hospital group at apollo including india's largest pharmacy. next to her is my dear friend ray vickery. he is one of washington's
original india proponents. i first met him after he stepped down as assistant secretary of commerce and we helped lead the business missions that accompanied president clinton in 2000. we have a lot of stories there. we will talk about that privately afterwards. thank you for coming here and it's great to have you and we look forward to hearing from you. >> thank you, it's a great pleasure to be here. i will make a few comments around three topics. first, a little bit on the indian economy and where we are and to address your question whether there is enough happening on the ground. second, on the trade policy pet leavea third, a is what it takes to move from the potential in the india-u.s. economic relationship to ask a
getting that central to happen on the ground. perhaps we need to reset expectations. economics side and what's happening on the ground, i think the modi government came in with huge expectations, very consciously, in terms of promising a future that would be different for india and very positive for india. i think we have seen a whole slew of different programs that have been launched. many useful things have been done on the ground whether it involves doing business. i would not underestimate how difficult the job it was to turn that ship around and to move from a situation where each year, we became a more difficult place to do business to starting to be common easier place to do business. without question, we have a long way to go still. the prime minister himself
recognizes that. he said a target that we should be in the top 50 countries of doing business and a short timeframe, two years. we have a long way to go, without question. we are number 130 at present. the most positive element is tapping into something i know that is dear to your heart's which is competitive federalism where there is now a conscious move to try to get indian states to compete one with the other. they rank each other on a set of different criteria each year. last year, the government said they would name and shame states that they would list states by their rankings. many of us in business were somewhat skeptical that when push came to shove in the rankings came out, you would not actually see too much there. everything was put out there. to our greats of rise, it was
industry years and associations, ascon. we have at, construction equipment manufacturers association. for eight or nine months, they have been reporting increases in increases in shipments that range between 40%-50%. that is the most tangible illustration of what's happening on the construction side. these infrastructure firms are buying a lot of equipment and paying for them so they can get to work and start these projects. many other useful things have been done. the bank separate -- the bankruptcy reform was long needed by the country. about two weeks ago, everyone is the common goods and services tax. it will be truly a game changer
for india. everyone is focused on the fact that gsd has happened and we recognize when and not if you it will happen but it has become a political football between the government and the opposition. there is tangible differences on what gsd is supposed to do and what the law is all about. the differences are purely political and the obstacles are purely political. wen we focus on the gst focus on what is happened on the reform side and the legislation side. last year, the upper house of parliament in india where the government is in the minority and therefore needs to rely on opposition support to pass legislation, passed 64 bills. gstocus on the fact that did not get past but 64 bills
did. those bills were economic reforms, many of them. faye happened with cross party support. there is a lot that has been happening on the reform side both from a legislative perspective and the government notification perspective. there is even more that has been announced that we look forward to happening. there are two areas and then i will move on. the two areas are, in the last budget, the finance minister , itunced almost in passing seems a truly landmark announcement. he said every new central government scheme would have a sunset clause in a clearly defined outcome. this sounds very basic and if you are in business, it's really basic. government, it's quite aspirational.
it seems that reality on the ground can be transformative for the country. clause, we have a huge number of schemes in india many of which are not understood. they could continue forever. they often do not have that much to it. if we have a sunset clause, that is plausible. the second thing is he said use the direct benefits transfer as one of the top three budget deficit items. three is an issue. if a transfer and program to provide benefits directly to farmers and move away from providing subsidizing. it's a huge potential area. it's one that can have truly dramatic consequences as it rolls out.
program this year but as these things get underway and start showing up on the ground, they can be very powerful. a comment on trade policy -- policy long, our trade in the country has been defensive. it has been focused on how to restrict the access of foreign firms to the india market. i think we are starting to see a change in that stands. we are starting to move to looking at how indian firms can be much more aggressive and outward looking at how our trade policy needs to reflect that outward looking stance by matching that and being much more focused on how we improve access to foreign markets. that change and trade policy will be quite dramatic in changing our trade policy
negotiating positions. i think we will go to a much more give and take. not every sector will benefit that balance, the economy is expected to benefit. a perfect example of how that has turned out to the benefit of all three countries -- of all free countries without necessarily being the benefit one expected. all three -- all free countries would look at nafta as very positive for all three economies. >> you're not ready to run for the president of the united states? >> not yet. finally, a comment on my favorite theme. thatthe central -- i agree
the india-u.s. economic relationship is strong. it is strong on the basis of individual company connections. an individual company participation. there are many companies from the u.s. who are active in indiana have been active for many years and are strong investors and strong contributors to the indian economy. in many respects, they are seen as indian companies sometimes. what's less well recognizes there are many indian companies active in the u.s. we did a report last year where we estimate that indian investment in the u.s. has created 90,000 jobs in the u.s. investment and it's an illustration of the bilateral relationship and investment flows and economic benefits going about directions.
-- going in both directions. bilateral trade is currently dollars.on th the aspiration is to take it to $500 billion. for it to happen, went to have the right expectation of each other. it seems that sometimes u.s. expect haitians of india on an is that the u.s. expects india to be like china. it to be systematic, organized, top-down, everything happening has announced in plans. u.s. should expect india to be like the u.s. expect a noisy democracy to operate like a noisy democracy. expected to operate with
contention, with obstruction, with things not going as logically as one would expect. we hear candidates say things that shock people. what they say, you have to take seriously and some of it you have to discard and you have to do that in india as well. same treat india with the glasses as we treat our own politics in the u.s., i think that will be very productive. i always give my colleagues and friends in india the same advice. when the u.s. congress is something that does not mean the u.s. says it. spent so many years at stanford and living on the west coast, i was always taught to be suspicious of washington. >> good advice. >> this made me very comfortable because growing up in india, i
was taught to be suspicious of delhi. i was comfortable with that perspective and i think we have understanding and commonality of thinking and mindset and approach. if we approach each other with that, we can go very far. >> good morning. nextl probably spend the 10 minutes filling in some of the white spaces that naushad forbes have left but you left a very few. america and my dad was a doctor and decided to come back to india. that was the beginning of the brain drain when he set up a company and said we can do things as well in india.
of course, we take a lot of u.s. help. that is where american dominance is important, that you have the knowledge and what you can give people. i would like to concentrate of it about the soft side. side, primee soft minister modi has always been on the forefront visiting many countries. he has visited countries being the first leader to go here or the first indian leader to visit a country. what is significant of tomorrow's visit is the fact that here he is, making his fourth visit to the united states at a time when the current president is in incumbent. intent is that his that india is beyond what the leaders of a country's
can do but it's up to people to build on the foundation that has been created over the years. i think that's important and that we need to move that forward. think one ofhat, i the ideas i would like to concentrate on -- i was surprised coming into this meeting -- i spent most of my life looking at health care. now i have a different perspective. if you see the investments that in india havenies made in the investments by indian companies in the u.s., it's pretty much equal. it's about $14 billion. that is a lot of money coming to india on the equity side. i think those tell you the opportunities that's available. the money is not coming for free, it's extremely tangible
and they realize the business potential of a country like india. a lot of time has been spent talking about the economy. i have great hope -- we have him through pretty bad times. would say why are you complaining when you have a but we have-7% inflationary pressures and high interest rates. what we are looking at is that the government has stepped up and are moving in to clear projects. companies have gotten into financial distress because of stalled projects. they are really moving to clear those barriers to move the needle on that. that's a clear sign of progress. is at the part of it
beginning of the year, the u.s. has budgetary allocations and many times, they don't get spent but here we are talking about like the railway ministry saying we spent our entire budget. the fact that so much money is in our roads and airports and these are clear indicators that i think you understand the importance of interest or a -- of infrastructure. you realize the importance of energy and the government looks at it as they are cleaning up picture of distribution companies that of traditionally had losses. they are cleaning up in terms of information systems that everybody has access to a bank account in some cities will flow through that. that's exciting. what all of you actually see on the ground is when you come to india, when you get out of our
new, fancy airport, there are 22 new ones being built that when you get out of the main airport and get off the freeway, you are seeing the dirt and all these things. years, this will improve i like the idea of cleaning up india. that has caught the imagination. the fact that we are mandated as companies to spend 2% of our activities and giving back, that created a significant amount -- like $10 billion or more which is available every year to complete these projects so that's the soft side. speaking to some of the soft if you see india
and the u.s., its tourism, education. there are more tourists and more students that tom from india to the u.s. the opportunities are also that --have 100 50 million people 150 million people that need to be skilled by 2022. if we want to create the that andic of creating improving the economy, it's huge opportunity that everybody can take and we need to move their skills. the u.s. has the ability to do that at every level. you have spoken about competitive federalism. things that we have been advising u.s. companies on is it's important to make your connections in delhi but more important to move into the states and talk to them and they will move projects faster and you can actually see fruition of
what you need. youth spoken about the but think about the capability of india. this is what excites people like amazon and uber and google and microsoft and facebook. the most number of users coming in india this to find out people live tomorrow. imagine? we have 300 million people that have phones and out of that, 150 million have smart phones. the capability of that, to move with theseoods things, you don't need global borders anymore and that's when they will start raking down is when the youth and everyone around us starts to demand. i have seen people in villages saying that we can order off of amazon. those are exciting things happening in the indian industry.
coming to smart cities, it was earlier a comment made that no one understands the real definition and they say barcelona is the smartest city in the world or could it be san jose? but it could in the future be someplace in india. we are creating the infrastructure and we will be able to use it to help people. that cannote people live without it and that's when it becomes smart, when you have these connected people on the services. is therehe opportunity and the u.s. companies have read between the lines and understand what is happening in the country. i would like to see how many u.s. companies that have come to india have actually left. that theirgrumble business projections were not as
fast as they should be. i can to you that nobody has left the country seeing that this is not a place we can work. i think that's a very important difference. perspective,mic there is the fact that today, the big companies that are in india are making significant contributions to the bottom lines and top lines of their companies in the u.s. i think that's important. it never used to be. it used to be that india was a nice place to play but the companies i am associated with are actually seeing quarter after quarter significant revenues coming from a country like india and this will continue to improve. i think the ties are very important. i would like to leave you with a last perspective.
continuertant that we a very fruitful dialogue at many levels. it's because we are both countries that are committed to the same fundamental ideas of not just democracy but democracy for the benefit of our people and peace in the country. it's a word that is not used india is thend only one that can rightly say tot it's important for us have peace within our states. that's why having a strong and stable government is important. it's important to have peace among our neighbors and we continue to try to have that.dialogue sometimes it is stressful but it does not mean we stop. that's the engagement with the u.s.. andu.s. can actually help there can be significant learning from that.
or any other leader will continue to make these trips over and over again just as you continue to come and engage with us. that is really exciting. more than anything, i can tell that morning program is busy because we are on cnn and it's the best show on earth so we can really see what's happening. >> my apologies to the camera crews in the room. the u.s. perspective on this? big deals on the horizon? first of all, i want to thank you for the opportunity to be here. we go back 20 years. freshfacedhim as a kid with a lot of hair when he first came from michigan.
cii, it's a great privilege to be here. the question is why would president obama, this will be the seventh meeting with prime modi, why would he have that and why would modi want to come? from the u.s. perspective, this comes at a time when both sides want to consolidate the gains which have been made. those gains are very substantial. rick has referred to the indian side. are the fastest-growing major economy in the world, 7.9% in the last quarter, you are the number one recipient of foreign direct investment in the world. look toa good time to the greatest source of our and
direct investment in the world which is the united states. from the u.s. perspective, i am sure that president obama sees the gains by leaps and bounds which had been made particularly on the strategic and security side. there are joint exercises, the trilateral arrangements with japan, being able to work together in afghanistan. a lot of people don't recognize that on this trip, prime minister modi's first stop was in afghanistan to inaugurate a dam which is there. indiat to do more with and not less. i see these things as a consolidation of gains which have been made. i think it's important to realize that when we talk about
economics and economic engagement and then we talk about security and strategic matters on the other side and then we add in values, democracy and so forth, we think we are talking about three different things. the fact is, all of those are related. they are part of one reality. just when it's noon here, it's nine 30 p.m. in delhi. there is only one time and that the present in which we are involved. which ithe illustration u.s.most capture expectations for this physical is back to the civil nuclear deal. on the u.s. side, there are many who say that there was not really the fulfillment that should have happened in that regard. time thathopes this westinghouse will be able to
fulfill in terms of making the breakthrough for six new , there is hope on the indian side that india will become part of the nuclear supplier group. that thaty is arrangement, the deal has been fundamental to progress on economic and strategic sides. the united states today is the largest defense supplier to india. past coupleover the of years. i expect that trend will be taken forward with his visit. everybody knows about the dtti, the defense trade and technology
initiative. those matters are going forward. i expect that there will be announcements which take that forward. for is a good time consolidation, bringing together gains which have happened economically and strategically and furtherance of mutual values3+. there is still a lot of work to be done. i don't think there is any secret that there is a rising tide of protectionism in the united states. all you have to do is look at the presidential election. left, you haved two candidates saying the same kind of things in terms of involvement. side, they say there is a large portion that should be sourced locally. if you look at what happened in the last budget, actually,
tariffs on some of the exports from the united states rose rather than going down when india already had the highest tariffs of any major economy and was really outside the norm. that this is good for both sides to take a look at what the mutual advantages are and not get swept up in this. one of the great things we have is an the united states strong bipartisan support for u.s.-india relations. is going to aster joint session of congress. what better opportunity to be able to submit now, regardless of what happens in the fall elections, the strong i partisan support and beat act some of those who say we did not get this or that -- and beat back
some of those who say we did not get or this or that. and to say to the american reforms whiche sometimes are referred to as big bang reforms are still on the agenda and are still going forward. we look first of all at the goods and services pact. hasreality is that modi pushed as hard as he can. said there are many things in common but one of our problems is that we are too much modi in the sense that would have gotten that reform through if it had not then for his legislature. on the u.s. side, there are many reforms that would have happened but congress and the president could not get along. we need to be reminded of that and know that something like gst
which will make a single market diameters of the that market have been painted already. when you have 54% of the population under 25, many computer literate, it has to be attractive to apple and amazon which theupon shobana kamineni serves. that needs to be put forward by both sides. alsois an excellent time to recognize that there is a commonality envision between the united states and certainly the modi administration in regard to u.s.-india relations. ministeris, the prime
india asdent obama see not just a regional leader, not just somebody who can be of help in regard to what happens in the indo-pacific region but across the board that we, as the two largest democracies and i would argue the two greatest democracies in the world, have so much in common. that starts with our economic engagement. we have to be able to get that right. we have to be able to come up with a common vision in regard to wtl and what happens with tpp and what happens in regard to trade. that has been a real lack and unless we can do that and i expect his visit will contribute to it, we will not be able to realize that vision. this is a good time for ansolidation and it's
good time to set a foundation that regardless of who is elected in the united states, that we will be able to go forward and fill that vision of being able to work together and be able to further the values with which we have in common. >> thank you. i will open up to the audience in a second but i have a couple of questions myself. you look at what might be on the agenda for discussion and there are pockets of people running around washington, d.c. trying the t'se i's and cross on papers released the next couple of days. one issue from the indian side that has come up over the last year is a stronger u.s. support for india's and trends into apec. the u.s. looks at it as a place
to draft model regulations. the united states also looks at it as an organization we hope will move into a trade agreement at some point in the future. itonder if you can talk of about the level of engagement on trade policy generally that groups like cii get from the government there. do they take a lot of decisions with the backing and support of industry ahead of times? do they lead and then have conversations? >> the government has a former consultant of mechanism called the board of trade. we are represented on it in many industry groups are also represented. it is a formal process of what the different requirements from different sectors in the economy are. there is a constant
consultation. generally, the more useful discussions happen in smaller inups and tend to happen deeper discussions on specific issues. a topic we have had discussions with the government on recently. we think there is a renewed drive and focus from the government and from high levels like from the finance minister who have made -- who has made many statements in support of the membership of apec and there is a hope we could see that turn into reality. about mentioned something business and peace in relationship. we have these discussions with two huge countries, markets
coming together on economic engagement. in terms of running a business from your own business and your in the unitedcii, states, we think a lot and one of the main interest of our department of state is looking at regional conductivity across asia. association, can you put into context how much time and energy do you think about engaging the big markets that are far away? there is the united states and europe and japan. versus relatively large neighbors you have. we can put hack us from an a but let's say bungalow -- and myanmar. spent lookingy is at the long-term relationships versus engaging with the big developed markets? perspective, it's
the largest in terms of industry body, even the smaller ones, the big countries have consulted with groups like cii. -u.s.have the india hig counsel. we haven't with germany and japan. the great interest which is taking shape with our neighbors. myanmar two weeks ago and with us, there were something like 20 people who came in and i went there mostly as heart of -- as part of the delegation. i saw opportunities that we should be engaging in which are interesting markets. our neighborhood is an important market.
in.re interested another company i am on the huge twois creating a wheeler company in bangladesh. there is lots of interest there because it's on our northeast border. now that the barriers are removed, we have a trade agreement with cambodia and laos and vietnam. that is an interesting route for countries and everyone is looking at those. we have engagements with sri lanka and many of our neighbors. the middle east is interesting. we have always had great connections with them and prime minister modi has made several visits.
there is renewed engagement and i made a couple of trips there but the big one is africa. that is the last unexplored continent. see the we go, we chinese footprint. years, cis haswo been traveling to africa. work has done a lot of getting there but now they are talking to india. india has a seat at the table. ray, you have seen the u.s.-india relationships begin to take off and show new peaks preceding my time but establishing the business council back in 1975.
you did a lot of work in the 1990's and the nuclear agreement in 2005 -- how do you put the current state of relations right now versus these other times? does this feel demonstrably different or is this similar to those other times? do you things things are less easily test do you think things are less easily reversed this time? is this positive momentum? >> i would say it's at an not because of the statements being made on each there is acause growing substance on every part of it. while you have problems you can point out, you can point out the reality is that if you are looking at trade, investment, looking at strategic matters,
they have reached heights which were really not dreamed of at say, when president clinton went into thousand and we worked on that. or >> that's the week i lost my hair. in case you are wondering. i don't have that much left either so i sympathize. i would say that's true but that does not mean that the past is prologue and necessarily you will have a continued upward trajectory. the reality is, when you have gained a lot, you still have a lot to lose. if it doesn't go right. i go back to my point about the necessity of being able to work things so it is truly a
win-win situation on either side. i was glad that dr. forbes talked about indian investment in the u.s. jobs,$15 billion, 90,000 that is something new. for so long, you only thought of india in terms of what u.s. investment over there was. we have a two-way operation. that can go away very rapidly. all you have to do is look at visas andts over1b agreements and what happens and services and all you have to do is look at apple not being able to sell directly to consumers. that is sort of a nonstarter. on so many sides, we are at a
height but we have to keep that momentum going. i am hopeful this visit will do that. about half an hour so let me open it up to the audience. in the front here -- if everybody can let us know who you are and who you represent and keep it relatively reef. thank you for being here. >> [indiscernible] i wanted to pursue the trade issue. there is the multilateral agreement [indiscernible] the relationship has been toxic even when the personal relationships between the negotiators has been good. i want to ask about politics having to do with trade.
i think it is the issue that all countries and trade negotiations of had to grapple with which is how you deal with an individual industry sector that might be a loser in a particular agreement even though the broad benefits would be much greater as a result. issue of how you articulate that in a comprehensive way and keep going at it with groups. there are various means that have been used in the process. you have transition times where it gets negotiated. you say that will be an of five or 10iod years for a particular sector that is vulnerable. one can address some of those concerns. for a country like india, i think we can be much more
positive about the benefits of trade going forward because there is so much more to do. we are in a market that is growing rapidly it's expected to grow rapidly for a long time. if you're in a market growing rapidly for a long time, maybe as a result of a particular trade agreement, maybe that industry grows at 5% instead of 10% over the next 10 years. frankly, that is much easier to handle than if you had an industry sector that might see a decline in output. i think it's possible to deal with it sector by sector. by constantly coming back to the winners and focusing on the winners and what the potential is an how the dynamic can be unleashed is important. one of the single benefits of trade that is always underplayed
are the technology benefits. i am not talking about technology flows in a formal sense but in formal feedback from selling to good markets around the world. and the feedback you get from being an active exporter is so powerful. doingls you what you are is quality or not and how do you get to good quality. it a quit you to cope with competition at home like nothing else. of engagingbenefit in international markets, it is a way of competing effectively at home. it's a completely undersold part of any such trade stance. i think some countries have used trade policy as a very effective way of reforming markets at
home. don't think we have yet in india and i think it's an opportunity for us to grab. >> if i can get ray's perspective. he was elected as a member of the virginia house and ran for congress but then also served as one of the forward leading arms of the u.s. government in the department of commerce. how do you balance this as an and then becoming a huge advocate for building trade? >> i think it's a really good question. it's a fundamental question of this season's electioneering. there is not really an easy answer because it the old story of the person that loses his job having had much greater personal
situation than somebody who is benefited by being able to buy cheaper goods and so forth. to sell thise able as a public official to keep an eye on what thenet is, so what happens is if you see the numbers they will concentrate on numbers of jobs lost or lost like that. d out.not nette dr. forbes spoke glowingly of nasa. is if you met out the jobs -- if you net out the as a wash.mes out then you put in the other kinds of things and it looks like a good deal. sell ina very difficult
this political atmosphere -- a le in this political atmosphere. policy meets the concerns about difficulties in our own country. i think this is true in india, too. if you could have a strong and vibrant infrastructure and creation program, a lot of jobs are created by that. and the edge is taken off those in the companies. other people are stepping up to be able to do that employment. one of the things that is important to me and seems to be lost in the political discourse, affectvery positive internationally of raising people out of power -- poverty. we speak a lot in the united
states about religion and how we are going to help other people and so forth. but one he comes down to international trade, some people seem to forget that it is hundreds and millions of people in india lifted out of poverty in part because there can be international trade. there was at one time, a trade slogan. it seems to me that is it important -- it seems to me that that is important. of directlot investment from germany and other areas that are looking for what some people are looking for in india, cheap labor and they that it states. the unitedbor in states. all the manufacturing of bmws.
toyota in this country. nettedhings have to be out and it has to be that kind of emphasis on it. , by the way,india anybody want to buy his new book -- india has to be able to do some of that itself in order to help those people who are clearly the losers when it comes to international trade. >> as much as we think that today -- the rhetoric against i.t. services and outsourcing seems bad. 12 years ago, when you had a candidate calling companies, i remember the response by companies that said outsourcing was good. there was a study done showing every job that was outsourced resulted in 1.3 jobs in the united states.
sticker, butbumper .oes not sell the argument it is a difficult argument to overcome measuring the winners versus losers. i see your hand up there. we have a microphone coming to you. thanks, rick. and thanks for the panel. thanks the remarks. i am working with an organization becoming the doll those -- becoming the davi os of the people in india. reade one hand, we have and heard about efforts by the reserve bank to clean out the nonperforming assets. we have heard about all of these
-- we have heard about the best central banker. those are positive things about where central banking is going. on the other hand, we have heard more influence by the finance ministry and the appointment of the deputy governor and more influence of the elected officials. from yourtion is, perspective, what is the relationship like between the central bank and the government? where do you see that moving forward? >> bury dangerous question. give it your best shot. -- very dangers questioned. give it your best shot. -- very dangerous question. give it your best shot. positivebroadly
because there is respect for the r.b.i. of independent institutions. at the end of the day, they've this -- at the end of the day they need to listen to the government, but needs to do with they think is right. lightustry, would we have to see a softening of interest rates? yes, we probably would have. but if there was going to be, if you were going to take a risk, we are ok with a more cautious approach, which is what the central bank chose to do. the governor is one of the great central bankers internationally. we think so, too. he has done a great job for the country. now, in terms of the relationship between the
government and the central bank, i think it is ok actually and quite positive. if you hear the prime minister and the finance minister speaking about the central bank, they will only speak in positive terms and seeing the relationships positive, while making an argument for low interest rates. i can't think of a time when the administration was arguing for higher interest rates and the fed was argument for lower ones. it always goes in a particular direction. that, it is important to understand that beyond the people, it is economics also. both of them have the reading of the same page.
they both want the economy to do well. there are certain things that have to be done. to address thead end goal. it needed to be done. it started even before him. the signs were out there. in terms of interest rates, i broad calling a from industry that we do need to see it lower, but if you the budget, it was a huge focus on fiscal responsibility. i think that is the interesting thing, that we have intelligent people in the economy that can be trusted to do the job and both of them respect each other. that is important. >> if we go back to his first
speech. his first line was something like, create a bulletproof balance sheet. did was months after they quantitative easing and indian markets took a dive. most of the policies were close to that first beach. i see a hand in the back. imho men of a company. i am a chairman of a company. [indiscernible]
90% are staying back. with that trend continuing. it will revolutionize silicon technology. trend, what would happen to silicon valley in the future? >> what would happen to the u.s. silicon valley in the future? [laughter] >> many years ago, there was a and thesilicon valley first edition of the book said route 120 was doing better because of large companies located there. then there was a new edition of the book that showed how silicon
valley had done much better because of a very startup environment. many small companies -- it meant that your bets were not on just a few large players. if one of those that's went wrong, you were in trouble. bets wentof those well, you were in trouble. yesterday,lo alto and if the traffic reflects the health of the economy, it is a terribly rude health. >> were they -- were they good cars are bad cars? >> with free charging stations. energy pricing perspective is completely crazy. they have thenk monopoly of brains or
intelligence. it has to come from everywhere. we might bes is losing out to other bigger countries that are investing on so much on innovation. the good thing is knowledge is getting transmitted. people have started talking to each other, collaborating with each other. the word collaboration is underused. we could spend more time on that. >> dave? dave: dave armstrong. my question has to do with innovation as it relates to energy. india's biggest imported crude
oil. in the last year, they spent up to $240 billion in crude oil. emphasizey want to what the imports of crude oil -- four u.s. and india, we faced common threats in terms of climate change as well as islamic radicalism from some of the sales from groups of isis smuggling crude oil. the question is what is the role of the indian government to enable an environment for innovation? thank you. side, you musty understand that the biggest investments apart from unlocking is thes in gas,
nonconventional renewables. we have so much going on with -- the exciting thing is cross-border hydro products. those are the things that will help in terms of energy security. the biggest thing to me in energy security is the government creating -- there are certain states that have surplus power. there are certain states in the south that don't. we have the small bottleneck. it will affect distribution. what we are doing a straightening -- strengthening our distribution companies, making them profitable. willthat happens, india have a stated objective of being able to create affordable power.
and not be power efficient. ,n terms of oil and gas imports it is a fact of life that we do import oil, and we continue to as the good economies that thist oil, we have to take and it is a large part of our negotiations. recent interest in iran is veryimportant -- is important. the fact that the u.s. is now allowing gas imports -- that is another exciting thing. timeould be spending looking at shale. there are opportunities, which
are lying within the country, but we will always continue to fact oftant -- it is a life, the way we do it efficiently is important. >> a substantial amount of those imports are exported, too. out the exports. [laughter] >> ray has written a book on energy. do you have anything you want to add? >> you can download the book. >> so many offers in this room. world'sharlie is the greatest experts in that regard. the question is there a well taken because the cooperation between india and the united states, particularly on innovation and energy, should be in thispart, not only
visit, but what happens at the strategic and commercial in august. rick, and csi s has taken a leading role in regard to marrying up innovation and energy, particularly in the innovation forum. regard toin incubators, innovation incubators as -- out of the gorgan. institute in an area where the united states and india has an opportunity -- you are right, we have done some things right in the u.s.. one of the things we have done right is in regard to having an innovation ecosystem, most symbolically in silicon valley, texas, and8, austin,
a number of other places. the u.s. and india can do much, much more in this area than what we are doing. >> we have about 10 minutes left. ask if there are questions specifically related to the visit? if not, we can go back to general questions. overall topic was about the visit in particular. please go ahead. yeah. tom timber. aboutrbes talked construction. talk about trade with neighboring countries? i am curious about things going on with bangladesh. china, because it is
some anxieties connected with that, but on the other hand, with the chinese investment, it you -- investment, you think they would be interested in things that go through landmarks. >> the road is huge. road --s to link that they are building six lanes that would take them straight into europe. the chinese have demonstrated the vision to be able to build large linkages, and they are not limiting it. the chinese have huge investment in projects in india. whether it is the pipeline projects, solar, whether -- most theur power plants
supercritical plans are not coming from china. are out fort they large projects because they are bringing cheaper financing and their prices are a lot cheaper. what of it -- whatever there are opportunities. two levels to the question, really. there is a project to build a bangladesh and end up in calcutta. it would be a dramatic improvement on what we currently have. but that requires two changes -- civil infrastructure. and one that is much easier to achieve, but more difficult, which is customs and border posts, and changes in the way in
which those are administered to enable road transport across the existing border. existingeen an achievement in the past few years. both in bangladesh in between. bury --things will go very rapidly as movement starts happening, there will be pressure for more easing of those border controls. it is a huge opportunity. .t is a completely neglected [indiscernible] >> we have the steering wheels on the left. was strange. but we figured it out. [laughter]
>> i am can silverman -- i am ken silverman. we bring corporations and nonprofits into india, set them up, and help expand their businesses. my question is for dr. forbes and shobana kamineni. one of the changes i have seen in india is entrepreneurship. young men and women in the past who may have wanted to work for the government, or their families one of them to work for the government, now want to start their own companies and many of them are. you have multi millionaires made in the space of months tragically. -- youryour multimillionaires made in the space of months practically. what is your take on the push for them to become entrepreneurs
and self-employed? entrepreneurship, you are seeing it now. we have always been a nation of traders. we have had the largest number of traders. if you see the number of jobs, it is hardly like 25% employed in the organized sector. then we have this huge trading opportunity, but the exciting part is that they use are now thinking -- they used to think that going to other countries, emigrating, was the big hope for them and their families. now they are seeing they can get a lot of it if you open a .tartup it is exciting.
the infrastructure that has come an interesting one. we will see that all over the world. it is not just an indian phenomenon. the contribution part of the u.s. plays if they are actually shaping some of those ideas. it is the amazon look-alikes that are so cute now in india. technology the other that will get optimized. i think a lot of them are being an american that company will buy them. [laughter] take -- the best -- the primeis minister launched a starter program at the end of last year.
event at four applications from potential entrepreneurs, or recent entrepreneurs. auditorium with 3000 seats. they had 200,000 applications. this was a problem. [laughter] it was a bury -- it was a very nice problem. and they are still scraping those 200,000 applications because of the whole process of excitement and interest shown around entrepreneurship. get somechallenges to of the startups, also focused on manufacturing, the great bulk of them are vary much, i would say the great bulk of them are a combination of service and technology.
strongerng somehow, a entrepreneurial movement underway focused on manufacturing would be powerful for the country. that is an area we are try to help them veer. >> let's take it to the front row here. this will be the last one. we have a microphone coming up. if you can use a microphone to everybody in the back -- [laughter] we do a lot of business with indian companies. glad to hear about the gts issue. [indiscernible] they say we cannot transport, even though i take a car and everything.
[indiscernible] i can i give training to the various colleges. >> can you get to the question? [indiscernible] >> in the u.s., -- >> ok. toit has the same potential really break down these completely artificial barriers between states. >> yeah. >> yet. >> let me conclude by first here.ng my co-panelists the conversations be have heard today, with prime minister
narendra modi arriving earlier today. groups need to focus on the issues of the other side instead of the rhetoric. ray says we need to break down the brackets in areas of engagement. other momentum on one side, and such aggression on the other side. we need to balance it out and make sure we have a full some approach bilaterally. -- rnment meetings government don't forget about what businesses need. it was great to hear this. i promise it was not plugged before hand, but the importance of engaging estate leaders. and it is not what narendra modi does or does not do. on this visit, we are looking to wrap up some of the deals that
were initiated earlier and are within reach before the end of the obama administration. the other piece is to put anchors on the other side of the election of the united states. how can he put tracks in motion that would be easy opportunities for the next administration to continue? otherwise, you may have to start from scratch. please join me in thanking the incredible panel. [applause] >> thank you very much. >> thank you so much. >> can i get the name of your book? [captions copyright national cable satellite corp. 2015] [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org]