President Obama Announces $10 billion Trade Deal with India

RAMESH KUMAR VERMA ( CS PURSUING ) (43853 Points)

09 November 2010

President Obama Announces $10 billion Trade Deal with India

Mumbai During the first two days of his 10 day Asia tour, President Obama met with Indian officials along with business executives from both U.S. and India in order to work out details on a $10 billion trade agreement.

Less than a week after (in the President's words) he and the Democrats took a "shellacking" in the mid term elections, President Obama announced plans for a new $10 billion trade deal with India.

In a meeting with several hundred businessmen from America and India Saturday the President addressed the room saying he would make some "fundamental reforms" to export controls guiding trade between the two countries.

Officials from the Obama Administration told the Washington Post and other news outlets that the changes will include measures such as, removing several Indian space and defense companies from the entities list, in turn making it easier for Indian companies to trade with the U.S.

During the address the President said, "I'm here because I believe that in our interconnected world, increased commerce between the United States and India can be and will be a win win proposition for both nations," and after receiving a round of applause he continued saying "I realize that for some, this truth may not be readily apparent."

The White House says that the new previsions in the export deal would help in supporting some 54,000 U.S. jobs.

Some of the new deals in the works include:

India allowing Caterpillar Inc and GE Transportation to bid on the country's purchase of over 1,000 diesel locomotives in the next 10 years.

The sale of 30 new 737 Boeing aircraft to a privately owned Indian airline named SiceJet.

The Indian military's purchase of 10 Boeing C 17s military transport planes.

Fighter 107 F414 jet engines to be sold by GE to the Indian military.

Also a separate $500 million deal for GE to supply India's Reliance Energy Ltd with 6 heavy duty gas turbines and 3 steam turbines.

The relationship between the US and India is one of the "defining and indispensable partnerships of the 21st Century," said the President.

During his visit, President Obama also made Indian officials aware of his intention to support India's membership to four international alliances, including the Nuclear Suppliers Group. These groups are responsible for the regulation of trade in nuclear, chemical, biological and missile technology / materials.