The US said that it is committed to a bilateral investment treaty with India, looks forward to holding additional positive and productive technical discussions on a treaty with the Indian Government as quickly as possible suggesting that setting a time frame for the same may not be possible due to time taking and complicated nature of negotiations.

The US views economic relationship with India as one of its “most important”, and is “actively working” to ensure that both countries are able to lay the groundwork for future opportunities as the Obama Administration has set in motion an ambitious global round of trade talks covering Europe and much of Asia, which is bound to influence countries such as China, India and Brazil.

Group of top American Senators and US India Business Council (USIBC), representing American companies doing business in India, have been aggressively pushing for a Bilateral Investment Treaty (BIT) with India. An investment treaty between India and the US will provide protection to Indian and American investors alike from arbitrary, discriminatory, or confiscatory government measures, enforceable by recourse to independent international arbitration.

Such a treaty could help facilitate two-way investment in infrastructure and other areas where capital outlay is welcome and would provide protections to Indian and American companies as they expand investments overseas.

A November report released by CSIS, a Washington-based think tank, said the treaty will yield clear benefit to both sides by reassuring each country's private sector with more certainty in entering the other country's market. It will provide India with much-needed foreign direct investment, create jobs on both sides and building stronger ties between the two countries, the report said.