MUMBAI: With the new BJP-led government firmly in place at the Centre and prime minister Narendra Modi’s impending trip to the US in September, the US has decided to step up the dialogue to improve trade and cooperation between the two countries. While the US secretary of state John Kerry arrived on a state visit to meet Indian officials to make it a potentially “transformative” moment, US commerce secretary , Penny Pritzker , who is a member of the Pritzker family which owns the Hyatt hotel chain, met most top industry captains in Mumbai over the last 24 hours to understand the mind of Indian businesses and opportunities of partnership that lie for the two largest democracies of the world. In an exclusive interview with TOI, Pritzker, who is a civic and business leader with over 25 years of experience in diverse sectors, spoke on a range of issues including trade and investments but didn’t mince words in criticizing India for stepping back from its commitments on WTO trade talks. Excerpts:

Q: When President Barrack Obama visited India in 2010, there was a huge buzz around the kind of fillip the trip could give to trade and investment ties between the two countries. But that promise has somehow withered. India and US have clashed over several issues including IPR and the diplomatic impasse over Khobragade. Where did things go wrong? Do you now see the creation of a wider roadmap for bilateral trade and cooperation?

A: The focus right now is on the possibility and what could go right. The opportunity right now is to reinvigorate the economic ties between the two countries. Your prime minister has indicated that he's leaned into the notion of foreign direct investment. It's a real opportunity for both US and Indian businesses to work together.

Q: Which are the areas likely to top the agenda from the US for a smoother partnership?

A: One area is infrastructure where $1.7 trillion is to be spent between now and 2020 just to keep up with the growth. Other areas are energy, water, ports, air ports and smarter cities where we have a pilot coming up between IBM, Dow Chemicals and Cisco. None of these are areas where the American businesses can do by themselves. The reason why I am optimistic is because your government is leaning into the idea of partnership and welcoming foreign investment.

Q: Have you set a target of the potential value of bilateral trade between the two countries, which at present is around $96 billion?

A: I am not going to put a dollar figure on it. What I am going to say is $96 bn dollar is wholly inadequate given the size of both our economies, given that there is enormous opportunity and the way to make it work is to start and have some success. That’s because I am also a great believer in the momentum and somehow we don't have enough momentum going right now. Given the fact that you have a new government and we have a desirous government we need to figure out how to capitalize on it. I spent the last 24 hours meeting with your business leaders and they are desirous of partnering with American businesses. What I am trying to do is pave the way for more partnerships between our businesses.

Q: At the WTO, India blocked an international agreement on easing trade regulations, saying the effort to promote global trade should be linked to food security, because of domestic concerns. How do you think it is going to impact global trade talks and their outcomes?

A: First of all I am very disappointed in India taking a step back from the agreement and it will have significant ramifications in terms of the Doha round and India needs to recognize that. The United States and the G20 ministers have repeatedly reassured India that they would keep their commitments in terms of working with India on the food security concerns which are understandable. I am hopeful that between now and the end of the month we find a way forward mutually beneficial.

Q: India believes that the US is hampering the interests of Indian IT companies and professionals through its visa regime. Can we expect any changes in the visa policy?

A: As you know the Obama administration supports comprehensive immigration reforms which will allow a greater number of H1B visas. The Obama administration does not want to be a country where we train talented people and then not make it possible for them to stay and work in our economy. We would like to be solving these problems as well.

Q: What are the expectations from India on reforms; considering that FDI in retail is still a far cry and FDI in insurance and defence is limited to 49%?

A: We welcome 49 (% FDI). The fact that your government today has picked several sectors where we want to see greater activity makes sense to me and what we should be doing is to work in those sectors and help our companies take advantage of that opportunity. Yes there is a lot more detail to be worked out. That's for us to work with your government but we have to recognize there is great intention, a recognition of trying to address the challenges that have been impediments to greater trade between our countries and what we should be doing is focusing on trying to get early wins.

Q: Any specific areas that the US would like India to open up through reforms?

A: What's important is to listen to both Indian industry leaders and American industry leaders. The issues are the same. There is as much innovation going on in India as there is in US and so intellectual property protection is something both business leaders are interested in.

Q: IPR is a major cause for concern for American companies..

A: Let's find common ground where there is area of common interest between the two business sectors where we can solve problems. Let's start there and work on something where everyone wants to see progress. If we focus there and build those capacities then I think you got the greater opportunity to address the more complicated issues.

Q: Is America seeing India as a counter balance to China's economic and military might in the region? Is that materially going to increase US investments into India, much like what Japan is looking at?

A: We want to partner with India because we see the great opportunity in this partnership. I see it as an opportunity for both of our countries to benefit from partnering together and I think manufacturing is one such area.

Q: With the formation of the BRICS bank, are there any US interests potentially getting hurt?

A: I am not going to comment on that but what we see is an opportunity to work with India. I see a rebalanced Asia and India has an important role to play there and I think balance is something that is in all our interests.

