Washington : Targeting a five-fold jump in Indo-US trade to $500 billion, Prime Minister Narendra Modi and US President Barack Obama on Wednesday pledged to deepen economic cooperation and will set up a joint programme to boost business investment.

After two days of talks focused on ways to reinvigorate the US-India relationship through economic, energy and security cooperation, the two sides agreed on $1 billion of concessional financial from the US Export-Import Bank for India’s renewable energy development agency.

The two leaders, who met for the first time, agreed on boosting two-way trade to $500 billion from $100 billion. However, no deadline was set for reaching that goal.

In order to raise investment by institutional investors and corporate entities, the leaders decided to establish an Indo-US Investment Initiative led by India’s ministry of finance and US department of treasury, with special focus on capital market development and financing of infrastructure.

They also agreed to establish an Infrastructure Collaboration Platform convened by the ministry of finance and the department of commerce to enhance participation of US companies in infrastructure projects in India.

“In this context, the US government welcomes India’s offer for US industry to be the lead partner in developing smart cities in Ajmer (Rajasthan), Vishakhapatnam (Andhra Pradesh) and Allahabad (Uttar Pradesh)," it said.

India will welcome two trade missions in 2015 focused on meeting its infrastructure needs with US technology and services.

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