Edging into India

TEXT OF STORY

MARK AUSTIN THOMAS: The U.S. trade delegation to India wraps up its week-long visit to the Asian subcontinent today. U.S. businesses have been trying to capitalize on the second-fastest growing economy in the world. But as Miranda Kennedy reports, India has been slow to respond.

MIRANDA KENNEDY: Developing trust has become key to improving trade relations between the two countries.

Many U.S. companies have found themselves shut out by government limitations on foreign ownership, something India has been hesitant to open up.

But today India said it may allow overseas investors to own up to 74% in cargo airlines. Good news for the 30 members of the Aerospace Industries Association, who are in India this week, trying to get access to India’s $8 billion aerospace market.

Ted Jones, with the U.S.-India Business Council, says politics has too often trumped business in India. But he thinks with passage of the highly anticipated U.S.-India nuclear agreement that will change.

TED JONES: What this agreement will do is give some insurance to U.S. reliability.

The nuclear bill will ease the threat that the U.S. will retaliate against India’s nuclear program by slapping it with sanctions.

In New Delhi, I’m Miranda Kennedy for Marketplace.