The Economic Relations Between US And India Is Set To Scale Greater Heights

25 Aug 2015

The economic relation between US and India is all set to scale greater heights in the coming years, eventhough numerous impediments exist. This is the opinion of the panel experts, who have been dissected the bilateral ties between the two largest democracies, which exist in the world.

The vice president of Business Development at the State bank of India (California) has pointed out that, our nation, India is shaping up, to be the economic success story for the year 2015.  India’s economy is growing faster when compared to China, as well as most of any major economy in the world. It would surpass Russia this year in size and nearly, it equals Brazil in 2016, as per new data from the IMF.

India is home to the 5^th largest number of startups in the world, they are interested to have exits by way of JVs or M&A with larger corporation especially in United States. The American companies for their part, are interested in incorporating as well as integrating the startups into their business models, because they are much interested to keep their offering fresh and also it is relevant to their customers, which is continuously getting more adept technologically.

As per Rossow, the US immigration, is treated as big issue for the Indian IT service companies, the nations need to find the common ground.

The United States does not wish to look at the Visa issue as trade issue, but it is homeland security, he said, on the other hand, we find Indian companies are interested to increase the use of H1 visas, they also are interested to increase the use of L1 Visas, which are intracompany transfer and they are interested to reduce the fees.

India is ranked about 142^nd by the World Bank on ease to do business. The target is to reach within 50 in the next couple of years, the Sivakumar has said, adding saying that, there has been clear evidence that, thinks have improved.

Hogan Lovells Wiss stated, there has been numerous challenges which the US companies doing the business in India and Indian firms investing in United States face.

One of the main challenges for the American company in India is to get around the centralized nature of decision making, while for Indian businesses in United States, the problem is quite opposite, she said.

The US is such decentralized nation in many ways, with state taxes, state rules as well as state regulations which have major impact as where an Indian company should be located, the Wiss said. There are different concerns which the Indian companies doing business in US have and it requires few sophisticated knowledge which helps to guide the Indian companies. 

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