India, US to base trade strategy on mutual interest

Mumbai: India and the US will select areas of mutual interest, starting with rural industries, farm sector and small businesses, to follow a clearly defined path for promoting trade and avoid haphazard growth.

This was decided at a meting of the independent private sector advisory group on trade policy.

The group, comprising trade experts who provide inputs to the US-India Trade Policy Forum, was set up in April 2007.

"We looked at rural industries, agro sector, small and medium enterprises, including the health sector today... It has refreshed the US-India trade policy forum," commerce and industry minister Kamal Nath said.

During the meeting, Nath and US trade representative Susan C Schwab, who co-chair the forum, said the group needs to make recommendations keeping in view where the two nations want to be in two to five years.

"I look forward to taking on board PSAG''S recommendations for intensifying trade and investment flows," Schwab said.

The US is India''s largest trade partner and foremost export destination, accounting for 16.83 per cent of India''s exports and around 6.34 per cent of India''s imports. New Delhi accounts for only around 0.75 per cent of the US'' total exports and imports.

While the US exports to India have grown by over 35 per cent in 2005-06, India''s exports to the US grew by over 26 per cent. The US-India Trade Policy Forum aims to double Indo-US trade in three years.