The Indo-American Chamber of Commerce (IACC) is a leading business organization advancing trade and investment between India and the US. Founded in 1968, IACC is a dynamic platform where businesses from both countries can explore collaboration, investment, and partnership opportunities. Leveraging its extensive network of members across diverse industries, the Chamber facilitates strategic dialogue, policy advocacy, and high-impact networking events. These activities fortify economic and commercial ties between the two nations.
IACC’s core initiatives focus on promoting bilateral trade, improving market access, fostering innovation and entrepreneurship, and enabling cross-border partnerships. The Chamber regularly organizes trade missions, business forums, and workshops addressing key industry trends, regulatory developments, and investment prospects.
Additionally, the IACC plays a critical role in shaping trade policies by representing its members’ interests and advocating for a more favorable business environment. With a strong presence in major Indian cities and active engagement in the US, IACC cements Indo-US economic relations, strengthening business-to-business connections and fostering international cooperation.
According to a U.S. Department of Commerce report, the United States is India’s largest trading partner in goods and services. In 2022, India exported $118.53 billion to the US, while importing $191.43 billion. During 2022-23, the US was India’s third-largest foreign direct investment (FDI) source, contributing $6.04 billion, or nearly 9% of total FDI equity inflows. Indian companies also make significant investments in the U.S., contributing substantial value. A study released by the Confederation of Indian Industry (CII) in April 2023 found that 163 Indian companies have invested over $40 billion in the US, creating more than 425,000 direct jobs.
In an exclusive conversation with The Interview World at the 21st Indo-U.S. Economic Summit, hosted by IACC, Dr. Lalit Bhasin, Summit Chair and Immediate Past National President of IACC, discussed the organization’s efforts in strengthening economic and trade relations between India and the US. He highlighted key industries driving trade between the two nations, shared insights on trade volumes, and addressed the alignment of policies between the two countries. The following are the key takeaways from his interview.
Q: In what ways is the Indo-American Chamber of Commerce facilitating and advancing the economic and trade relationship between India and the United States?
A: Primarily, we aim to strengthen and advance the relationship, specifically focusing on economic cooperation in trade, commerce, industry, and investments. In the past, this relationship was largely one-sided, with US investments flowing into India.
However, the dynamic has now shifted. Indian companies are increasingly investing in the United States, generating substantial employment opportunities for US citizens and workers in various sectors. As a result, maintaining a continuous dialogue to address emerging challenges is crucial. Over the past 21 years, this ongoing exchange has been instrumental in achieving meaningful progress in bilateral relations.
Q: Which key industries are driving and strengthening the economic relationship between India and the United States?
A: The primary area of cooperation between India and the United States is technology, particularly in the software industry. Indian technology is actively utilized in the US, while US advancements benefit India. Additionally, defense production is another significant sector where both nations collaborate closely.
On the manufacturing front, this partnership is evident, while in services, it extends to healthcare, entertainment, and media industries. Bollywood and Hollywood, for example, represent areas that require mutual promotion and support for further growth. Encouraging collaboration across these diverse sectors is essential for strengthening the bilateral relationship.
Q: What is the current trade volume between India and the United States, specifically in terms of imports and exports?
A: Indian exports, particularly, software and services, experience significant growth. Similarly, the United States contributes substantially to India’s healthcare and technology sectors. Advanced US technologies are also increasingly entering the Indian market. As noted by NRIs, there is already strong cooperation between the two countries in defense and technology, further strengthening their strategic partnership.
Q: How compatible are the business regulations and ease of doing business frameworks between India and the United States?
A: The United States and India each have their regulatory frameworks. Therefore, establishing compatibility between these systems is essential. Moreover, we must facilitate mutual understanding of operational practices and implementation strategies. By doing so, we can create a more cohesive environment for collaboration.
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