'US-India business interests too entrenched to allow distrust'
The Indian and US economies are so inter-twined that they cannot afford any distrust from the diplomatic row between the two countries to affect their mutual business interests, according to industry body Assocham.
New Delhi: The Indian and US economies are so inter-twined that they cannot afford any distrust from the diplomatic row between the two countries to affect their mutual business interests, according to industry body Assocham.
"Almost all top American brands from Pepsi, Coke and McDonalds to General Motors, Boeing to Microsoft are well? entrenched into the Indian economy that is set to only grow in terms of the consumption story of its young population," Assocham said.
Over 95 percent of India's aerated beverages market is dominated by the American drink makers. Likewise, the chamber says, India sells 60 percent of its USD 75 billion software and IT-enabled services to the US while half of top 20 IT companies in India are from the US.
Moreover, bulk of India's USD 15 billion pharmaceutical exports find destinations in the US while the American goods ? from high end to mid-segment are mass pervasive in the Indian markets, it said.
"We are sure that given our mutual inseparable interests, the bitter diplomatic row would not be allowed to create distrust among the people of the two countries and their business communities," Assocham President Rana Kapoor said.
In terms of merchandise exports, the US was India's second largest destination with shipments of USD 36 billion in the financial year 2012-13. Likewise, goods imports from the US amounted to USD 25 billion during the same period.
India is also among the largest markets for the aviation sector of the US, both civil and military. Same is the case in several other high-technology areas.
For India, the US has become the biggest destination for its over USD 100 billion IT industry while Indian students, over two lakh, are among the largest expat pupils in some of the top American universities.
For the US, India has remained a growing market of strategic interest since the early nineties when the Indian economy was thrown open to the global investment and supply of goods and services.