MUMBAI, DEC 12: The growth in future will not be through big companies. US Secretary of Commerce William M Daley says that small and medium sized companies would fuel the economic growth in future and generate employment.

Speaking at a wrap-up news conference on Friday, Daley said in the US, employment rates of the big corporates have declined, while it is the smaller companies which are providing jobs. "Hence, it would be proper to encourage the enterprise of these sectors in both the US and India," he said at the conclusion of his five-day visit to India, leading 30 small and medium sized companies of his country. Urging India to open its doors wider to foreign banking, insurance and law firms, Daley advised Indian companies to respect the intellectual property rights of the other countries.

He said the expansion of trade with the United States depended on the future pace of India's reforms, which began in 1991. "Despite current political uncertainties, the economic transition is well underway, and we have every reason to believe that India will remain steadfast in its commitment to economic reform," Daley said.

"A wider opening to foreign banking and insurance companies would provide a critical source of infrastructure investment capital," he added. Daley also urged India to strengthen its patent laws.

He encouraged India to move speedily towards full compliance with a WTO agreement on trade in IPR.

Daley promised that US companies would contribute significantly to the modernisation of India's creaking infrastructure, but urged more access to the full range of technical services, such as engineering, legal and financial services. "It is a fact that most American companies will be more willing to come to India if their lawyers are allowed to practice here," Daley said.

Earlier, Daley told an audience of lawyers and businessmen that some in India like to enjoy the benefits of the global marketplace, and at the same time, avoid responsibilities. "You can't have it both ways," Daley said. Trade between the two countries is expected to reach $ 10 billion next year.

A survey by the US embassy, an additional $ 5 billion of direct investment was expected over the next four years.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.