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warpig
11-07-2010, 07:18 AM
http://blogs.ft.com/beyond-brics/2010/11/07/obama-in-india-deals-breakdown/


Barack Obama’s visit to India might have lacked a little in emotions and showmanship but business wise companies of the world’s two biggest democracies signed or committed to a total of $15bn worth in deals.

Beyondbrics has compiled a breakdown of the deals - with their approximate value - and the potential jobs created by the agreements between the US and Indian companies.

Heavy Transport Aircraft:

Boeing and the Indian Air Force have reached preliminary agreement on the purchase of 10 C-17 Globemaster III military transport aircraft, a deal that will make the Indian Air Force the largest owner of a fleet of C-17s outside of the US.
Deal value: $4.1bn. Potential US jobs created: 22,160.

Engine Sale for the Light Combat Aircraft:

General Electric Company on October 1 was declared the lowest bidder and selected to negotiate a contract to provide the Indian Aeronautical Development Agency with 107 F414 engines to be installed on the Tejas light combat aircraft. The deal has yet to go through.
Deal value: $822m. Potential US jobs created: 4,440.

Commercial Aircraft Sale:

Boeing will sell SpiceJet, an Indian low-cost airline, sealed 30 new B737-800 commercial aircraft.
Deal value: $2.7bn. Potential US jobs created: 12,970 jobs.

Gas and Steam Turbine Sale:

General Electric Company singed a deal with Reliance Power, the energy group owned by billionaire industrialist Anil Ambani, to supply six advanced class 9FA gas turbines and three steam turbines for the 2,500-megawatt Samalkot power plant expansion.
Deal value: $750m. Potential US jobs created: 2,650.

Reliance Power and US Ex-Im Bank Agreement:

US ‘s Export – Import Bank and Reliance Power signed a Memorandum of Understanding that will provide Anil Ambani’s power group up to $5bn to boost it electricity production.
Deal Value: $5bn. Potential US jobs created: Not specified.

Diesel Locomotive Manufacturing Venture:

GE Transportation and Electro-Motive Diesel have been selected by the Indian ministry of railways as the sole two bidders for a venture to manufacture and supply 1,000 diesel locomotives over 10 years.
Deal Value: More than $1bn. Potential US jobs created: Not specified.

Sale of US Mining Equipment and Related Support Equipment:

The US’s Export – Import Bank approved more than $900m in export finance guarantees to Sasan Power, a subsidiary of Reliance Power, supporting the sale of US mining equipment and services from Bucyrus International of South Milwaukee, Wisconsin, and other U.S. vendors, in association with the 3,960-megawatt coal-fired Sasan power plant in Madhya Pradesh.
Deal value: $641m. Potential US jobs created: 3,460 jobs.

Several other smaller deals, below $10m, have also been signed but the ones below are the main agreements or MoUs signed.


Comments:
Media here have been trumpeting this $10 billion "trade deals/creation of jobs" triumph by BO for two days. When were these deals negotiated and finalized, approved by stockholders, etc.? What, exactly, did the obamas' Extravaganza in India have to do with these 'job creating' trade deals?

Seems like a phone call or two could have saved the taxpayer a lot of money here.

m00
11-07-2010, 12:03 PM
Here is the number of potential jobs created:


Potential US jobs created: 22,160.
Potential US jobs created: 4,440.
Potential US jobs created: 12,970 jobs.
Potential US jobs created: 2,650.
Potential US jobs created: Not specified.
Potential US jobs created: 3,460 jobs.

Let's be charitable and say the "not specified" one is 10k.

This is a total of 55680 potential jobs created. It was posted earlier that Obama spent about a billion dollars of taxpayer money on this trip. So each potential job cost the US taxpayer a little under 20k. He's certainly improving since the stimulus!

But this begs another question... the billion he spent came from taxes. So lets say there is a business that is not taxed, and they can afford 100 employees. If their revenue is taxed 50% lets say they can afford 50 employees (this assumes complete reinvestment, which isn't far off for small business owners). What value is there to government destroying jobs with its left hand in order to create jobs with its right hand?

warpig
11-07-2010, 12:06 PM
I certainly don't get the math here, and truthfully they don't either.

Apocalypse
11-07-2010, 12:26 PM
I don't see another thread on the trip, but seen this in the UK Daily Mail. Thought it was interesting.

“…PProbably not since the days of the Pharaohs or the more ludicrous Roman Emperors has a head of state travelled in such pomp and expensive grandeur as the President of the United States of America.

While lesser mortals – the Pope, Queen Elizabeth and so on –..."

"Mr Obama’s entourage will travel in a fleet of 45 U.S.-built armoured limousines, half of which will be decoys. He will also travel with 30 elite sniffer dogs, mostly German Shepherds..."

..."The White House has, according to some reports, booked the entire Taj Mahal Palace Hotel in Mumbai, the city’s most luxurious. It is not uncommon for the grander heads of state to reserve a floor or two, but a whole hotel is unprecedented..."

"...a bomb-proof tunnel will be erected for Mr Obama ahead of his visit to Mani Bhavan - the Gandhi museum - on Saturday..."

"To the amazement of the Indians accompanying the U.S. agents, it was apparently decided to erect a bomb-proof over-ground tunnel, which will be installed by U.S. military engineers in just an hour.

The kilometre-long tunnel will measure 12ft by 12ft and will have air-conditioning, close-circuit television cameras, and will be heavily guarded at every point..."

http://www.dailymail.co.uk/news/article-1326962/Obamas-India-visit-security-erect-bomb-proof-tunnel-Gandhi-museum.html

AmPat
11-07-2010, 07:32 PM
For every positive the media reports, there is an equal or greater number of negatives they don't mention. I hope this turns out well. If government stays out of the way, it will be good. I would also note that the word "potential" which is used many times, is not the same as "actual."

SaintLouieWoman
11-07-2010, 08:23 PM
For every positive the media reports, there is an equal or greater number of negatives they don't mention. I hope this turns out well. If government stays out of the way, it will be good. I would also note that the word "potential" which is used many times, is not the same as "actual."

The devil is in the details.