INDO-AMERICAN BUSINESS TIMES

June 1985
Gandhi-Reagan Conference
Special Issue

TABLE OF CONTENTS

Part One

Page No.

<table><tbody><tr><td>From the Publisher</td><td>9</td></tr><tr><td>Prime Minister Gandhi Answers Our Questions</td><td>11</td></tr><tr><td>Indo-U.S. Ties: Perceptions and Projections<br/>Harry G. Barnes, Jr.</td><td>12</td></tr><tr><td>Message from President Carter</td><td>13</td></tr><tr><td>India: A Future of Hope, Promise<br/>Craig Nalen</td><td>14</td></tr><tr><td>India's Success: Cause for Freedom<br/>Dr. Henry A. Kissinger</td><td>15</td></tr><tr><td>India-Exim Bank of U.S. Ties Growing<br/>William H. Draper III</td><td>16</td></tr><tr><td>India: A Better Place to Do Business<br/>Lionel M. Olmer</td><td>17</td></tr><tr><td>Gandhi Visit to Better Ties Robert Peck</td><td>18</td></tr><tr><td>Big Opportunity for Technology Transfer<br/>Charles H. Percy</td><td>19</td></tr><tr><td>Festival of India<br/>S. Dillon Ripley</td><td>21</td></tr><tr><td>USAID's Development Role<br/>Peter McPherson</td><td>22</td></tr><tr><td>India on Threshold of Leapfrog<br/>Hasmukh Shah</td><td>23</td></tr><tr><td>India's Monetary Policy R.N. Malhotra</td><td>25</td></tr><tr><td>World Bank and India W. David Hopper</td><td>27</td></tr><tr><td>IFC's Role in India J. Parmar</td><td>29</td></tr><tr><td>Indo-U.S. Ventures: Big Scope<br/>D.H. Pai Panandiker</td><td>31</td></tr><tr><td>Resource Mobilization D.G. Gupte</td><td>33</td></tr><tr><td>Export of Engineering Goods R.P. Jhalani</td><td>35</td></tr><tr><td>Foreign Investment and Taxation in India<br/>Nishith M. Desai</td><td>38</td></tr><tr><td>Legal Aspects Affecting Investment in U.S.<br/>Lalit Gadhia</td><td>42</td></tr><tr><td>India's Public Sector Duleep Singh</td><td>46</td></tr><tr><td>Optimistic Prospects for India<br/>Lloyd R. Rudolph and Susanne Moeber Rudolph</td><td>49</td></tr><tr><td>STC: New Directions P.C. Luthar</td><td>57</td></tr><tr><td>Architectural Heritage Prof. Robert MacDougall</td><td>65</td></tr><tr><td>Andhra Pradesh: Promising State in India<br/>Dr. P. L. Sanjeeva Reddy</td><td>69</td></tr><tr><td>Scope in Electronics<br/>Kamlesh Sonawala</td><td>75</td></tr><tr><td>India's Public Sector<br/>T.V. Mansukhani</td><td>79</td></tr><tr><td>Media Revolution in India<br/>Joan L. Erdman</td><td>83</td></tr></tbody></table>

Part Two

India: Latest Facts and Figures
Given in Various Tables

U.S.-India Enterprises, Inc.
and
Indo-American Business Times
Warmly Felicitate India's
Beloved Prime Minister

Rajiv Gandhi

on His First Official Visit to
The United States of America

Indo-American Business Times

Gandhi-Reagan Conference
Special Issue June 1985

Published by
U.S.-India Enterprises, Inc.

818-18th Street N.W.
Suite 1010
Washington, D.C. 20006, U.S.A.
Tel: 202-887-0186; Telex: 292087

Publisher and Editor-in-Chief

Hasmukh Shah
Administrative Assistant

Kimberly Watson
Production Executive

Shobha Shah
New Delhi Correspondent

Kundan Vyas

Bombay Office

Arvind Shah, Manager
14, Anik Court

211, Shivaji Park Road No. 5
Bombay 400016, India. Tel. 462065

Price per Copy:

U.S.A. and Canada — U.S. $14.95
plus $3.00 Postage and Handling

Overseas (Airmail only) —
U.S. $14.95 plus $5.00 for
Postage and Handling.

Indo-American Business Times

P.O. Box 33364, Farragut Station
Washington, D.C. 20033, U.S.A.
Tel. 202-887-0186; Telex: 292087

All rights reserved. No part of this publication may be reproduced
in any form or by any means or stored electronically for further use
without permission in writing from the publisher.

JUNE '85

INDO-AMERICAN BUSINESS TIMES

7

India's Success Will be Success for Cause of Freedom

Dr. Henry A. Kissinger

U.S.-Indian relations have not always been smooth, as was to be expected from differences in history, culture and geography. But they have been characterized by several underlying themes: both countries are democracies dedicated to the concept of human dignity. Both seek a world of peace. For the United States, a strong, self-reliant and developing India serves its vital national interest. For, an India playing a large role in international affairs will make by its very might a major contribution to the stability of South Asia and the peace of the world.

Process of Development Complicated

The process of development is, of course, a complicated one. It involves moving from a world of tradition to one of constant change. It involves a spiritual adventure as much as technological change, for it requires coming to grips with new ways of thinking and to make them part of a society's life.

No country can really develop, therefore, primarily on the basis of foreign aid. Development must become part of the experience of the country concerned.

India's Progress Watched

This is why India's friends watch her progress with so much fascination. Prime Minister Jawaharial Nehru consolidated India's independence; Prime Minister Indira Gandhi fought for India's nonalignment and fostered its unity with fierce integrity. The new Prime Minister Rajiv Gandhi seems determined to build on these foundations an India that is technologically and philosophically part of the contemporary world and that has achieved this role by its own efforts.

Americans will observe these efforts

with respect and will want to give appropriate support. They have admired the courage with which the new Prime Minister has embarked on strengthening the unity of his country and relating it to the rest of the world. They will surely want to cooperate in a manner respectful of India's tradition and political individuality.

They will be convinced that whatever the differences of perspective, India's success will be a success for the cause of freedom.

We wish Prime Minister Rajiv Gandhi every success on his visit to the United States.

Dr. Henry A. Kissinger, an eminent statesman, was the 56th U.S. Secretary of State from September 22, 1973 to January 20, 1977. He also served as Assistant to President for National Security Affairs from January 20, 1969 until November 3, 1975. On July 19, 1983, President Reagan appointed him Chairman of the National Bipartisan Commission on Central America. He has also been appointed as a member of the President's Foreign Intelligence Advisory Board and is a Director of the Foreign Policy Association.

The meeting point of hi-tech electronics

Software

Microwave
Communication

Analytical
Instruments

Computers

Test and
Measuring
Equipment

Hinditron is one of the largest and most comprehensive organisations in analytical instruments, test and measuring instrumentation, communication, computer and software industries in India. It provides the one source solution for requirements in hi-tech electronics and has exclusive representation rights for its principals. These include Tektronix,

Applied Dynamics International, Applicon Inc., John Fluke Mfg. Co. Inc., Varian, Monitor Labs, Digital Equipment Corporation and GenRad, amongst others.

The Hinditron totality spans the widest spectrum of computer operations in the Indian context: computer marketing and field services; software

development and export, consultancy services; training in information technology; data centre management; communications; process control; testing and measuring.

So whether your requirements are engineering, scientific or commercial, Hinditron offers you complete field-proven solutions in hi-tech electronics.

HINDITRON

Regd. Office:
69/A, L. Jagmohandas Marg,
Bombay 400 006, India.
Phone: 828 1902/812 5344
Telex: 011-2326 HSPL IN_

JUNE '85

INDO-AMERICAN BUSINESS TIMES

Dattaram-HC 11/85

15

MAY. 16 '85 10:32 KISSINGER ASSOCIATES N.Y.

P.002

U.B.-INDIA ENTERPRISES, INC.

U.B.-Indian relations have not always been smooth, as was to be expected from differences in history, culture and geography. But they have been characterized by several underlying themes: both countries are democracies dedicated to the concept of human dignity. Both seek a world of peace. For the United States a strong, self-reliant and developing India serves our vital national interest. For an India playing a large role in international affairs will make by its very might a major contribution to the stability of South Asia and the peace of the world.

2.

This is why India's friends watch her progress with so much fascination. Prime Minister Nehru consolidated India's independence; Prime Minister Indira Gandhi fought for India's non-alignment and fostered its unity with fierce integrity. The new Prime Minister Radjiv Gandhi seems determined to build on these foundations an India that is technologically and philosophically part of the contemporary world and that has achieved this role by its own efforts.

MAY. 16 '85 10:33 KISSINGER ASSOCIATES N.Y.

They will be convinced that whatever the differences of
perspective India's success will be a success for the
cause of freedom.

We wish Prime Minister Radjiv Gandhi every success
on his visit to the United States.

Henry A. Kissinger