Insufficient infrastructure hindering India-US bilateral trade: US under-secretary

Chennai:

Insufficient infrastructure along Indian coastline has been a hindrance in exploiting the potential of bilateral trade in merchandises goods between India and United States, according to US under-secretary Francisco Sanchez.

Delivering the keynote address during a forum on ‘Indo-US partnership in port and maritime sector’ organized by The Madras Chamber of Commerce and Industry here on Tuesday, he said, “In 2011 bilateral trade in merchandise goods between India and the United States was nearly $58 billion dollars, up from roughly $49 billion in 2010. This increase is good but there is potential to do so much more and one of the obstacles is the insufficient infrastructure along the coastline.”

“Indian ports have experienced growing traffic in recent years. But while activity has increased capacity has not. This results in congestion at ports and lost opportunities,” he said.

Highlighting that coastal shipping accounts for roughly 40 per cent of trade volumes in the US, China and Europe, he said in India it represents only 7 per cent of total domestic cargo transport network and there is need for huge investment in the sector.

Eyeing to have a share in the $66 billion funds earmarked for port infrastructure and $27 billion in shipping sector by India, he said the 12-member trade delegation are specialized port-related equipment suppliers and service providers and help in building port infrastructure.

Union Minister for Shipping G K Vasan said lot of projects like building berts and terminals have been taken up to reduce congestion in ports and the government has identified public private partnerships in attracting investments.

He also invited US investors to participate in port development plans besides possibility of India and US working together to counter the menace of piracy.