This post was published to indiausbit at 3:28:47 PM 9/22/2011
India – USA BIT (Bilateral Investment Treaty)
This blog is to provide information about BIT between India and USA. The goal is to get the BIT (with visa provisions) signed and make it effective ASAP.
Why our goal is to get this treaty become effective ASAP? Number of reasons.
- BIT can bring billions of dollars of investment to USA and India and create millions of jobs in both countries. Currently there is no quick mechanism for an Indian investor to invest in USA. As one of our friend pointed out there are thousands of visitors/temporary workers who want to invest in US. This includes persons on H1B and other visas. These are truly entrepreneurs. Imagine just 60, 000 Indians invest $200, 000, that’s $1.2 Billion! In Silicon Valley (without BIT) immigrants have been shown to establish 40% of new ventures.
- It will also allow American entrepreneurs to invest in India and generate jobs in India.
- India is generating millionaire every day due to economy and liberalization-US is missing out on them.
- BIT does exist between Pakistan and Bangladesh-and not India. These two countries (and numerous others) do not come anywhere close to India’s investment capacity.
Unfortunately there are talks and announcements on fast tracking BIT-they are not going anywhere for at least 5-10 years! In other words you have to bear this blog for that long at least!
- For any BIT to be signed, it has be based on finalized Model BIT. Model BIT has never been finalized despite the fact that it is in ‘development’ stage —since………….2004! Last recommendation by ACIEP was sent to Secretary of State Hillary Clinton in 2009. As of today no movement is expected toward finalization of Model BIT.
- Once BIT is signed it has to be ratified by 2/3 of senate. Considering how partisan Senate is this might take ————forever. Other FTAs-even finalized and signed are NOT getting through congress.
So the talks and announcements are to calm down chambers of commerce and industry leaders-they are just talks and nothing else. No statements have been made by US officials on when final Model BIT will be ready.
I will talk about another problem with Model BIT tomorrow-besides time it is taking.