American companies have so far not evinced any interest in investing in the huge Indian infrastructure market, which is estimated to be worth over $200 billion, Civil Aviation Minister Praful Patel said on Tuesday.
"It is with anguish that I say that not a single US company is really keen on investing in physical infrastructure," he said while referring to the immense scope of developing greenfield airports in the country which allows 100 per cent FDI.
Addressing a CII conference on 'Expanding Indo-US Commercial Ties' here, he said though there was some US investment in areas like aviation technology, infrastructure development in areas like aviation infrastructure, roads, power plants or ports have not attracted American capital.
"US firms are shying from investing in the infrastructure sector in India," he said and urged US Chamber of Commerce to impress upon American firms to come to India.
Observing that India had a 'massive appetite' for investment in the infrastructure sector, Patel said investment in infrastructure projects over the next ten years was estimated to be 'upwards of $ 200 billion'.
"In the aviation sector, India (currently) has a very low base. So, there is immense opportunity to grow," Patel said. Civil aviation sector currently accounts for 15 per cent of the total volume of Indo-US trade.
Addressing the conference, US Chamber president Thomas Donohue lauded the recent expansion in Indo-US trade saying it was time that the private sector of both countries took lead in 'starting the next chapter in the positive US-India commercial relationship'.
Expressing hope that India would quickly resolve implementation issues surrounding the Indo-US civil nuclear deal, he said the two countries 'should make most' out of this agreement.
Without directly referring to the nuclear liability bill pending due to opposition in Parliament, he said 'a (liability) legislation is badly needed here' not only for India's nuclear trade with US but with other countries also.
While 8 million Americans lost their jobs in the recent recession, India too needed to provide employment to millions of youth who entered the workforce each year. "More trade and investment between us means more jobs and prosperity for both of us," Donohue said.
Noting that there was tremendous interest and enthusiasm among US private sector towards India, he said the governments of both countries should have the right policy environment so that private sector in both nations could 'create a surge of new joint ventures, increase investment flows, expand trade and create millions of jobs'.
