International Business

Impacts in PEST factors due to Obama

visit’s to India

Submitted by
M.Goverthanan
07MBI033
Batch -II
Obama's Visit to India Moves Clean Energy
Partnership Forward

Joint Clean Energy Research and Development Centre

Obama and Indian Prime Minister Manmohan Singh talked the importance of tackling
climate change together, and announced a number of measures aimed at a clean energy-
based, low carbon future for both countries. They made Collaboration in areas like building
energy efficiency, bio fuels and solar energy by launching a Joint Clean Energy Research and
Development Centre.

The Joint Clean Energy Research and Development Centre will mobilize $100 million
in public and private funding over five years ($25 million each from the U.S. and India) to
promote research and development on potential breakthrough technologies. In the initial
phase, the Centre will focus on three broad areas – solar energy, advanced second generation
bio fuels, and energy efficiency in buildings. For each of the three areas, grants will be
awarded to a joint U.S.-India consortium of partners such as government laboratories,
universities, corporations and non-governmental organizations. The U.S. Department of
Energy will coordinate with India’s Planning Commission on a peer-review process to select
projects that are cutting-edge and transformational, and which meet both India’s and the
United States’ needs in terms of clean energy and energy security.

So because of this both USA and India will become carbon free country. The
environment will be protected. Since the project need to meet both the Indian and US energy
standards the business man will create the projects in order to meet the clean energy and
energy security. And also the business people will create projects by using solar energy and
bio fuels. So the demand for the solar energy and bio fuels will increase. It creates
opportunities for the business people to do start a business related to solar energy and bio
fuels. It also increases the employment in that field. By this both India and USA will
economically benefited.
U.S India Energy Cooperation Program

Next they launched of a U.S India Energy Cooperation Program, an innovative

public-private effort that will leverage business resources in both the U.S. and India for
commercial clean energy projects. The reason behind that is both Obama and Manmohan
singh recognized the crucial role that can be played by the entrepreneurial and private sector
in both countries in promoting clean energy.

The U.S India Energy Cooperation Program is expected to catalyze funds for rapid
scale up of pilot projects and accelerate entrepreneurship in areas like smart grids, energy
efficiency, solar and wind energy and shale gas. President Obama’s visit to India provided
occasion for some key U.S. agencies to announce bilateral clean energy initiatives with India.
Agencies like the Export-Import Bank of the United States (ExIm) and the Overseas Private
Investment Corporation (OPIC) announced that they will channel increased funds towards
clean energy projects in India. ExIm will provide financial support to the purchase of U.S.
goods and services for the development of renewable energy in India, and OPIC is
contributing $100 million to the Global Environment Fund’s $300 million South Asia Clean
Energy Fund, most of which is expected to be directed to India-based projects. In addition,
OPIC will work with the Indian Infrastructure Development Finance Corporation (IDFC) to
create an India-specific sub-fund.

By these both the countries economics will be developed. The Indian entrepreneurs
will get support and fund form ExIm with these many businesses related to solar and wind
energy will be started in India. It creates employment opportunities and improves the
economic and at the same it will not affect the environment. Due to the energy cooperation
program the US firm’s gets opportunities or business to supply the equipments for this
businesses to India. Since they get export orders from this they will increase their production
and they will increase the employees to achieve the production. It reduces the unemployment
level in US. And their economic also improve by this cooperation program. It increases the
scope for the business which related to solar, wind energy, bio fuels, shale gas, etc., If the
renewable energy sectors gets increases means all other industry prefer this more than non
renewable energies like crude oil. So it reduces the pollution level in the atmosphere and
makes both the nation to become carbon less country.
 President Obama also confirmed about the U.S. support for India’s Jawaharlal Nehru
National Solar Mission, in its efforts to increase the role of solar energy in India’s growing
economy. In this United States gets benefits by supplying the equipments and services of U.S
firms. And the Indian market can benefit from advanced technologies from the U.S., and both
countries will pursue discussions to refine domestic-manufacture requirements for such
technology in India.

ExIm bank will fund 900 Megawatts of solar and wind facilities by Reliance Power.
A small U.S. business, Advanced Materials Corporation (AMC), will sell precision
instruments to India’s Banaras Hindu University (BHU) for use in fuel cell research. Noveda
Technologies, a small U.S. start up, will sell Chennai-based Wysine Technologies monitoring
equipment needed to jointly develop and market a new solution for web-based, real-time
energy monitoring for “greening” buildings. By this both U.S and Indian firms will get
benefits. Both the countries get develops in economic, technology and also in environment.

The leaders announced new bilateral public-private efforts to drive market

transformation in commercial buildings efficiency. First, major Indian companies – including
Infosys and Wipro – will join American companies such as Marriott, Target, and Walmart in
piloting a program to ensure continuous energy-efficiency improvements in their facilities.
Second, Prime Minister Singh and President Obama agreed to commence a strategic dialogue
among their governments, utility regulators, and private-sector partners regarding programs
to promote efficient equipment and appliances. Third, the two leaders announced enhanced
technical cooperation on cool roofs, which are a promising and low-cost way to improve
commercial buildings efficiency. By the President Obama visits to India, the hundreds of
U.S. businesses, including small businesses, are increasing investment in clean energy in
India and that these partnerships are marked by immense innovation, making the U.S.-Indian
economic relationship one of untapped potential.

On the whole, both President Obama and Prime Minister Manmohan Singh used the
visit to give due acknowledgement to the seriousness of climate change, and to stress both
countries’ commitment to tackle the challenge. Both leaders’ remarks during the visit make it
clear that India and the U.S. have their sights set on a low carbon future, and recognize that
clean energy solutions will drive investment, job creation and economic growth both in India
and the U.S.