NEW DELHI: A Bilateral Investment Treaty (BIT) between India and the US will deepen the strategic partnership and would further enhance B2B (Business To Business) and G2G (Government to Government) contact between the two sides, according to Daniel Sullivan, US Assistant Secretary of State, Department's Bureau of Economic, Energy, and Business Affairs.

He was speaking at the Roundtable conference on "India - US Cooperation in Energy & Investment" organized by the Confederation of Indian Industry (CII). The first Round of negotiations held in February 2008 reflected a strong desire between the two sides to conclude the treaty, mentioned Sullivan.

He added that concluding BIT is important priority of the present Administration of the United States. Quoting a speech by Prime Minister Manmohan Singh that "investment is a sign of faith", Sullivan said the US would like to deepen this faith with India.

He said a successful conclusion of this bilateral investment treaty between the two countries will be a positive signal to the world mired in multiple crises. Bilateral relationship between the two sides is already on an upward trajectory, he said and added that over the years India has captured the imagination of the US in a big way.

Sullivan said trade between the two sides grew by 30 percent last year to reach US$ 40 billion in 2007. He added that there is a presence of strong 3 million Indian American community in the US and around 84,000 Indian students are studying in US universities who are serving as "living bridge" between the two countries.

On WTO he said the US is studying the new NAMA texts and added that the Doha Round is at a critical juncture. He hoped that good relationship between USTR Susan Schwab and Indian Commerce Minister Kamal Nath would help in the two countries cooperating with each other to strike a deal.

On Energy, Sullivan said that since both India and the US are the major consumers of energy and have growing demand, both need smooth functioning energy markets. He said that there has been a strong multilateral cooperation on this issue especially in the Asia Pacific region.

He added that deepening engagement with IEA (International Energy Agency) and connecting India and China with the major consumers of energy especially one platform is very important. Jayant Bhuyan, Deputy Director General CII & CEO, India Brand Equity Fund said India is opposed to labor and environment issues being included in the BIT negotiations, since India treats labor and environment to be a social issue rather than a trade issue. He said Indian strategy has been building a low carbon economy while achieving high growth, which is both sustainable and inclusive.