File photo of Assistant Secretary of State for South and Central Asian Affairs Nisha Desai Biswal.
Noting that a high-standard bilateral investment treaty (BIT) with US would lock-in long-term economic reforms in India, a top Indian-origin American diplomat has said it will also provide much needed confidence to investors to do business in the country.
If India could complete a BIT with the United States it would become India's highest-standard investment agreement, Assistant Secretary of State for South and Central Asian Affairs Nisha Desai Biswal told a Washington think-tank yesterday.
"It would demonstrate to international investors - especially those from the United States - that India is open for business. And, it will attract much-needed capital for a variety of sectors, including infrastructure, energy, health, education, and many more," Ms Biswal said.
The diplomat was speaking at Peterson Institute for International Economics on the occasion of release of a report 'India's Rise: A Strategy for Trade-Led Growth' authored by C Fred Bergsten.
"Because a high-standard BIT with the United States would lock-in reforms for the long-term, it would give investors the confidence they need to make the long-term investments that India needs," she said.
What's more, by signing a BIT with the US, India would show that it is willing and able to join other high-standard investment agreements, making it even more competitive and integrated into the global economy, she noted.
India, she said, has already completed bilateral deals, like the investment chapter of their economic partnership agreement with Japan, that provide strong investor protections.
"If India were to commit to those same standards with the United States, our two countries could greatly accelerate the negotiation of a BIT. It would require a lot of hard work, but it would unlock huge dividends," Ms Biswal said.
"The bottom line is that we want more Indian firms to invest in the United States, and US companies want to build on their almost USD28 billion dollars of investments in India. We want to see the expansion of sectors like the digital economy, renewable energy, and especially manufacturing, which could help integrate India more deeply into global supply chains and markets," she said.