Opportunities abound for Colorado companies to bolster business in India, particularly in construction and energy, a top Indian official said Monday.
“The political environment between U.S.A. and India has eased up a lot in the last couple of years,” Susmita Thomas, consul general of India, said in an interview at the Ritz-Carlton in Denver. “Trade has improved.”
Thomas, who is based in San Francisco, met with Colorado businesses and local officials Monday as part of a series of visits to several of the 15 states that fall under her jurisdiction.
With the Colorado economy on the mend, Thomas said, it’s a good time “to reach out to see if there could be a joint focus in developing business, trade, commerce (and) interactions.”
In 2009, Colorado exported $94.6 million in goods and services to India, the state’s 16th-largest international trading partner, said Jim Reis, president of the World Trade Center Denver.
While Colorado’s total exports dropped 25 percent last year, its business with India fell just 6 percent.
“They’ve been a better friend during the economic downturn than others,” Reis said.
India, however, remains a difficult place to do business, Reis said, noting a new policy that will withhold 20 percent of a sale from a foreign company as income tax, or 10 percent if the company has a registered account.
“(They) talk about how they are the market of the future, which I don’t disagree with, but they keep on throwing little extra challenges in front of companies,” Reis said.
Thomas said there are about 220 Colorado companies doing business in India. Construction is a high-growth area as India plans to spend $400 billion to $500 billion over the next five to 10 years building schools, hospitals, roads, airports and other infrastructure.
Thomas also notes that Colorado could benefit from India’s movie industry, which produces 600 to 700 films a year, by stepping up its financial incentives to compete with the likes of New Mexico.
“The opportunities are immense,” said Purnima Voria, chief executive of the National U.S. India Chamber of Commerce, which helped organize Thomas’ visit to Colorado. “We have just not explored them.”
Andy Vuong: 303-954-1209, avuong@ or
