The US Consul General to Kolkata, Christopher Sandrolini feels that adequate emphasis needs to be given to pharmaceuticals in India as a potential area for investments, in addition to information technology. Sandrolini was speaking at an interactive session with the Bengal Chamber of Commerce, Kolkata recently. “Biological reserves are largely untapped here. US pharma companies could be interested,” he said. While he was optimistic about US investments in the field of pharmaceuticals, he said India would become one of the largest exporters to the United States following removal of quantitative restrictions. Bilateral trade between India and the US touched $ 12.8 billion in 1999-2000 which is $ 1 billion more than the figures for 1998-99. A trade surplus of $ 5.4 billion was enjoyed by India vis-a-vis $ 4.7 billion in 1998-99. Exports from India to the US was to the tune of $ 9.1 billion in raw materials, finished goods and  computer-related services, while imports worth $ 3.7 billion was recorded in terms of US goods and services during 1999-2000.

However, he felt that while there was immense scope to increase US investments in India, compared to South-East Asian countries, the current figure was small. According to a survey conducted by the US embassy in India of 118 US investors, the total market value of the US investments in India is around $ 5.3 billion, through an employment of nearly 49,000 people. He expects an additional investment of $ 4.6 billion in the next two years, he said. Sandrolini emphasised that while eastern India had a huge potential in the businesses of  computer software, airport equipments, power transmission equipments, mining industries and food processing, it was not hardselling itself often and enough. He pointed out that despite being number one in coal, iron ore, bauxite, jute and tea production, the region attracted only 3.5 per cent of US investments in India during the last financial year, coming fourth among the five zones.

He further mentioned that though the eastern region was India’s largest producer of fruits and vegetables, only 2 per cent of it is currently being processed, leaving infinite potential to be explored. He said that another area that needs attention was infrastructure development. He said that if Bangladesh granted transit rights, road network in the north-east region would get the much-needed boost.

Sandrolini disclosed that US firms plan to sell nearly $ 300 million worth of mining equipment during 2000-02 in India through global tenders.  Recently, in view of the meltdown of IT-related stocks at the Nasdaq, there is a commonly held notion that IT alone cannot sustain commerce and industrial relations between the world’s two largest democracies. A case-in-point is the recent reduction in issuance of H-1B visa especially to Indian IT professionals. It is therefore necessary to explore alternative avenues and potential in which to do business in order to sustain volumes reached by virtue of the IT-related industries in the recent past.