Negotiating Indo-US investment treaty: Pranab Mukherjee

Union Finance Minister Pranab Mukherjee on Monday said negotiations are on for India-US Bilateral Investment Treaty.

?We are all witnessing to an emerging new world order where there is a higher degree of interdependence amongst nations and more dynamic and equitable arrangement for prosperity. We have learnt a lesson from the current global crisis that remedy lies in collective and corroborative approach-not in unilateralism,? said Mukherjee.

He was addressing the Indo-US CEOs Forum meeting here on Monday.

Mukherjee said: ?In our anxiety to solve problem in one part of the world, we should not create greater problems in other parts of the World and more so in the Emerging Markets Developing Countries (EMDCs).?

The meeting was attended by US Treasury Secretary Timothy Geithner, Commerce Secretary Gary Locke, Agriculture Secretary Thomas Vilsack from US side and Commerce and Industry Minister Anand Sharma, Deputy Chairman, Planning Commission Montek Singh Ahluwalia from Indian side among others.

Besides, the meeting was also attended by the CEOs of different US and Indian Companies, part of Indo-US CEOs Forum.

The Finance Minister said that India has emerged as an attractive global investment destination.

He told that in infrastructure sector alone, the investment requirement is US dollar 514 billion for the Eleventh Plan (2007-08 to 2011-12), out of which almost 30% of this investment is envisaged to come from private sources.

Mukherjee further said that for the Twelfth Five Year plan (2012-13 to 2016-17), the investment in infrastructure is envisaged at US dollar 1 trillion.

He told that this magnitude of investment would require innovative modes of financing.

As far as Indo-US bilateral relations are concerned, the Finance Minister said that economic policy, finance and trade constitute important planks of our relationship.

Mukherjee said: ?For us, the US remains a prime source of investment, technology and an important trading partner.?

?As we make efforts to increase investment in infrastructure, and give a fresh impetus to the manufacturing sector, the importance of our partnership with the US will increase. This mutually beneficial engagement would stimulate innovation, spur job creation, and promote sustainable and inclusive growth in our countries,? the Minister said.

Mukherjee further said: ? We have set-up a Committee to consider the recommendations of the Indo-US CEO?s Forum under the Chairmanship of Deputy Chairmanship of Planning Commission and the Committee has already met twice.?

He said that Treasury Secretary Geithner and he launched the Financial and Economic Partnership when Geithner visited Delhi in April this year.

The Finance Minister said that the partnership will strengthen engagement in economic, financial and investment related issues.

He further said that both the countries are currently negotiating a Bilateral Investment Treaty and are committed to take further initiatives that will contribute to creating a more conducive environment for investment flows.