Page 6 - IACC Newsletter August-September 2013 Issue 13

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From the Secretary General’s Desk
Dear Members,
IACC’s 44
Annual General Meeting held in September was significant in many ways. It provided a platform for informed
discussions among members, US Embassy officials and experts to discern the current economic milieu and suggest
measures for overcoming the challenges we are upfront with. Significantly, Indian economy is passing through a
trajectory of cautious optimism given the fact that the growth impulses are still too feeble, but seemingly evident.
Export figures for the last quarter give us something to cheer upon. Riding on the back of a curtailed demand for gold
imports and a sort of stabilization in the oil prices, the current account deficit has come down. But inflation is still high.
Economists are divided on the reasons for the unabated inflation. Some are of the view that it is driven by wages and
argue that the reverse migration taking place now is preventing movement of labor from excess pockets to deficit ones.
The other school points out that the spiraling food prices are the root cause for the continuing inflationary trend. We
have to resort to panoply of economic decisions to address these issues and most important among them is the
reduction in interest rates. We have to create an enabling situation for progressively bringing down the interest rates to
boost aggregate demand, investment, business opportunities and employment generation.
The high level discussion between Prime Minister Dr. Manmohan Singh and President Barack Obama in September is
indicative of the positive strands in the continuing Indo-US economic dialogue. Two leaders emphasized more intense
participation in sectors such as aviation, defense, education, energy and infrastructure. With the upcoming Indo-US
Resurgence Summit to be held in New Delhi in the first week of December, IACC aims at reiterating the significance of
these sectors and channeling FDI flows into India in these sectors from the US.
45 years ago on October 24, visionaries Mr. S. L. Kirloskar, Mr. A. M. M. Arunachalam, Mr. H. P. Nanda, Mr. Kilachand
and Mr. Harish Mahindra, along with Mr. Frederick Fales and Mr. John Oris Sims, set up this bi-national Chamber,
championing the cause of fostering trade and business relations between India and the U.S. IACC will continue to
explore new ideations and strategies for enhancing the bilateral cooperation and people-to-people contacts between
our two countries. Ours is a useful platform for extended business dialogue. This newsletter is a part of our strategic
plan to enrich the tier two diplomacy. I invite you to read our Newsletter regularly and to suggest measures for enriching
its content.
With regards,
Atul Vyas, Acting Secretary General