The U.S. just unlocked billions of dollars in FDI with India after a deal was struck between president Obama and Minister Modi. The two countries reached an understanding on two issues that, despite a groundbreaking 2006 agreement, had stopped US companies from setting up reactors in India and became one of the major irritants in bilateral ties. The new deal resolved differences over the liability of suppliers to India in the event of a nuclear accident and US demands on tracking the whereabouts of material supplied to the country, US ambassador to India Richard Verma told reporters. This new deal will open up an excellent alternative for the U.S. As china become increasingly difficult to deal with India serves as a healthy alternative to FDI and manufacturing for the U.S. Although it has been slow paced economic process for India the New Minister has promised to increase India's FDI in the near future and has already began to do so through new bills and laws promoting foreign relations.
http://www.businessinsider.com/the-us-and-india-just-unlocked-billions-of-dollars-in-trade-2015-1
1 comment:
This seems like a great relationship because both parties will be benefitting. FDI also helps the economic development of the country where the investment is being made.
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