http://www.sacbee.com/24hour/politics/s ... 8847c.html

India, U.S. agree on economic cooperation
By RAJESH MAHAPATRA, Associated Press Writer
Published 5:17 am PST Thursday, March 2, 2006
NEW DELHI (AP) - India and the United States agreed Thursday on a sweeping agenda for economic and scientific cooperation, one day after the two countries set a three-year target to double their trade.

A joint commission on science and technology, more cooperation in cybersecurity and collaboration in agricultural research and the development of low-cost drugs to fight AIDS and bird flu were among the agreements reached during talks between President Bush and Indian Prime Minister Manmohan Singh, a joint statement said.

Capping all the issues was a deal on civilian nuclear energy that will allow the U.S. government and private companies to supply nuclear technologies and fuel to India, where demand for energy is soaring.

"Many of the areas that our cooperation now covers are central to India's development," Singh told reporters. "This an ambitious agenda, one that is befitting our growing strategic partnership. When implemented, they will make a real difference to the lives of people."

Bush said U.S. businesses are eager to get involved in India's economic success - the South Asian economy is growing at close to 8 percent, one of the fastest in the world.

"People in the United States now understand trade with India is in their interest," he said.

The two leaders promised to take quick action on recommendations made by a forum of chief executives of U.S. and Indian companies that was set up last July to draw a roadmap for increased business cooperation, the joint statement said.

The two sides discussed how India can draw more investment from America, especially for infrastructure projects, and agreed to hold an investment summit in the United States later this year. India needs $150 billion annually in infrastructure investment to sustain its current growth rate.

Encouraged by the nuclear deal, the two sides also outlined an exhaustive plan for cooperation in non-nuclear energy, such as clean coal technologies and non-conventional energy.

"It is in our interest to share technologies to move away from fossil fuel," Bush said.

On Wednesday, the two sides set a target to double trade to over $50 billion in three years. Two-way trade totaled $26.8 billion last year.

The United States is India's largest trading partner and accounts for 16 percent of India's exports and 6 percent of its imports, but India accounts for just 1 percent of U.S. trade.

The two sides also agreed to work together toward a successful end to ongoing negotiations at the World Trade Organization, which wants a new global trade liberalization treaty by the end of this year, the joint statement said.