According to the US-India Business Council (USIBC), the bilateral trade between India and the USA could reach the $500-billion mark over the next decade.  From $25 billion in 2006, the Indo-US trade has risen to $100 billion last year, while defense trade alone received $10 billion in the past ten years.

According to Ajay Banga, Chairman of the USIBC, and CEO of a major credit card firm, the bilateral trade should focus on energy, defense, education and medical car, among others. Adi Godrej, President of the Confederation of Indian Industry, said that there was recognition in the U.S. about the role India can play in the years to come. The increasing involvement of industry members highlights the fact that our business communities can reach higher heights though strategic cooperation and collaboration.

On the $500-billion two-way trade target, Godrej also said “it can be achieved if both the sides commit against protectionism, create enabling frameworks such as the bilateral investment treaty, recognize the value of labor mobility, focus on enhancing services trade, focus on investments and value addition, and definitely get down to industry-level and state level co-operation.”

According to the Economic Times, the US-India Business Council (USIBC) has said that India needs to address the concerns of nuclear liability bill if it wants foreign and domestic Indian suppliers to participate fully in the Indian Market.

USIBC also said that two companies (GE Hitachi Nuclear Energy and Westinghouse Electric Company) are having commercial discussions with the Nuclear Power Corporation of India Limited. They both look forward to the conclusion of Early Works Agreements. Other companies (in the fuel cycle and supply chain) look forward to supporting those two companies in their projects.

On Friday, April 13,  I had the honor of hosting the  Honorable Union Minister of Power from India, Mr. Sushilkumar Shinde. We organized a private lunch with the US India Business Council and met for lunch at  the Los Angeles Chamber of Commerce.

India's Union Power Minister SK Shinde (right) and Gunjan Bagla

Shinde’s ministry is responsible for all power generation and distribution in India, other than nuclear or non-conventional power.  Attendees include many investors, entrepreneurs, corporate executives, large firm attorneys, investment bankers and government officials with an interest in upgrading India’s electric power infrastructure. Minister Shinde is a native of the western state of Maharashtra where he started his career in police and the courts. He’s been Chief Minister of that state (which is like an American Governor). He has also held power posts in his political party including managing the election campaign of Congress President Sonia Gandhi, back in 1999. Shinde has been a member of India’s lower house of parliament, the Lok Sabha and also its upper house, the Rajya Sabha.

Corporate executives in the room were impressed with his knowledge of technical and business issues relating to Power. He was accompanied by senior bureaucrats and by the Chairman of India’s Power Grid Corporation who provided additional insight as needed. This was minister Shinde’s second trip to Los Angeles since becoming Power Minister.

Power Minister SushilKumar Shinde (in Olive Suit), with Gunjan and lunch guests

What this means:

American companies who wish to participate in India massive expansion of electrical power infrastructure can be assured of opportunities in power generation, grid management, software, equipment, perhaps even in turnkey distribution can be assured of a serious dialog when they visit India.

At its annual conference, held this month on the campus of Virginia Commonwealth University, the South Asian Studies Association presented its 2011 Community Service Award to my friend Ron Somers, President of the U.S. India Business Council for his role in promoting US-India relations.

Ron Somers, President USIBC and me; (D. Shimkhada photo)

SASA President Dr. Bill Vanderbok presented the award which reads in part,  “In acknowledgement of your boundless passion and your ongoing contributions in bringing the peoples of the India and the United States closer together for business, trade and cultural exchange. You are truly the universal ambassador to both countries and are equally admired and respected in business, government and academia. Your infectious energy motivates and drives all whom you touch and the South Asia Studies Association acknowledges your invaluable contributions to both cultures.”

Bill Vanderbok, Ron Somers, Gunjan Bagla, Pranav Kumar (D Shimkhada photo)

Ron and I (in my role as a board member of SASA) engaged in an hour-long spirited colloquy over the current state of US-India relations in a plenary session of the conference. We talked about how only six American presidents have ever visited India, but this includes all three of the most recent: Clinton (2000), Bush (2006)  and Obama (2010). Somers said that Secretary of State Hillary Clinton is a great ally for India and for US-India relations.

On the subject of education collaboration, India needs to expand its higher education system by a factor of 10 to 1500 universities; We  discussed how the audience in particular and American universities in general can play a significant role in supporting Indian HRD Minister Dr. Kapil Sibal’s ambitious plans. India’s needs include primary education; spoke of India’s Right to Education Act of 2010 that entitle every child to demand free and elementary education between the ages of six and 14 years.

The CEO of the McGraw Hill Companies, Terry McGraw interviewed on CNBC at the Davos Economic Forum talking about doing business in India. He is the curent chairperson of the Washington, DC based US India Business Council. (My firm is a member of USIBC).