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Updated: November 8, 2010 19:39 IST

Obama’s trip to India marks major gains for U.S. companies

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U.S. President Barack Obama in New Delhi on Monday.
PTI U.S. President Barack Obama in New Delhi on Monday.

The White House on Saturday released the highlights of India-U.S. trade deals that exceed USD 14.9 billion in total value. The release said as part of the Obama Administration’s National Export Initiative, which aims to double the U.S exports in five years, the U.S President described India as a key market for the U.S.

The deals will largely benefit the big companies as well as the small and medium-sized enterprises in the U.S. Most of the U.S companies have finalised their deals with Indian Ministries and private companies, which in turn will support an estimated 53,670 U.S. jobs and result in USD 9.5 billion export business.

The Boeing Company and the Indian Air Force (IAF) have reached a preliminary agreement on the purchase of 10 C-17 Globemaster III military transport aircraft, and are now in the process of finalising the details of the sale. After the delivery of the aircrafts, the Indian Air Force will be the operator of the largest fleet of C-17s outside of the U.S. The delivery of each C-17 supports 650 suppliers in the U.S. This deal will also support Boeing’s C-17 production facility in Long Beach, California, for an entire year. The company and SpiceJet have also been reached an agreement for the sale of 30 B737-800 commercial aircraft.

The General Electric Company has been selected to negotiate a contract to provide the Indian Aeronautical Development Agency with 107 F414 engines to be installed on the Tejas light combat aircraft. The company’s facilities across the United States will be in a position to export almost one billion dollars in high technology aerospace products after the finalisation of the deal. The company was also selected to supply six advanced class 9FA gas turbines and three steam turbines for the 2,500-megawatt Samalkot power plant to be constructed by Reliance Power Ltd..

The Ministry of Railways has announced the selection of the sole two bidders-GE Transportation (Erie, Pennsylvania) and Electro-Motive Diesel (LaGrange, Illinois)—for a venture to manufacture 1,000 diesel locomotives over 10 years. The estimated U.S. content of this contract is expected to exceed USD 1 billion.

L-1 Identity Solutions and another U.S.-headquartered company lead two of the three vendor consortia, which have been chosen by the Unique Identity Authority of India for the first phase of its registration work.

Harley-Davidson Motor Company will open a new plant in India for the assembling of the motorcycles from U.S.-built “complete knock-down” kits. It will allow the company to reduce the tariff burden in the Indian market. Palantir Technologies, a small Silicon Valley software development firm, has announced a strategic partnership agreement with the Maharashtra State Police. Palantir’s end-to-end analytical software platform will be used on a trial basis to identify security threats.

The Export – Import Bank of the United States has announced a Memorandum of Understanding with the Reliance Power Ltd, expressing its willingness to provide up to USD 5 billion for the purchase of U.S. goods and services. The Bank has also announced the approval of more than USD 900 million in export finance guarantees to Sasan Power Ltd., a subsidiary of Reliance Power Ltd., supporting the sale of U.S. mining equipments and services, in connection with the 3,960-megawatt coal-fired Sasan power plant in Madhya Pradesh.

Robbins Company, headquartered in Solon, Ohio, will provide tunnel-boring machines, conveyer equipment, and associated technical services for the construction of tunnels to supply water for the city of Mumbai. The company has reached an agreement with UNITY-IVRCL. Duke Medicine, located in Durham, North Carolina,and Medanta Medicity, located in Gurgaon, Haryana, will be announcing a joint venture agreement to launch the MDRI, a proof-of-concept clinical research facility within Medanta’s hospital. Duke Medicine will also be partnering with Jubilant Life Sciences, headquartered in Uttar Pradesh, to conduct research studies and co-develop discoveries, with significant funding and in-kind support provided by Jubilant.

The other major companies that have bagged major deals from India are SPX Communication Technology, Spancrete Machinery Corporation, Intuit, Advanced Material Corporation, Implant Sciences, Bell Helicopter, Skelley Medical, Noveda technologies and Ellicot Dredges, said the White House in the release.

According to the release, between 2002 and 2009, U.S. goods exports to India quadrupled, growing from USD 4.1 billion to more than USD16.4 billion. In the first eight months of 2010, U.S. exports to India totaled USD 12.7 billion, up 18 per cent from the same period in 2009.

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