"Investments in the insurance sector where foreign equity up to 26 per cent has been allowed would have an investment potential of about $2-3 billion while in the telecom sector it would be to the tune of half-a-billion dollars," Celeste said addressing a luncheon meeting of the PHD Chamber of Commerce and Industry (Phdcci).

US investments in the power sector would be to the tune of another $2-3 billion, he said and complemented the government for taking quick decision on opening up of the insurance sector and announcing the telecom package."Decision to carry out such reforms clearly indicate that the government is serious to carry out second generation reforms and the industry should support the government in its endevaour to do so," Celeste said.Stating that the second generation reforms were not going to be easy, he said the state governments should also come forward by taking hard decisions to check the fiscal deficit and carry forward the reform process for the benefit of its citizens. The present government has an action-oriented agenda and there is a lot of scope for improvement in the Indo-US relations, Celeste said.

Indo-US bilateral trade during 1992-1998 was to the tune of $6 to 12 billion and this should be doubled in the coming years with the two countries identifying new areas of cooperation, he said.

Welcoming Indian corporates' plans to list in the New York Stock Exchange (NYSE) and the Nasdaq, he said, this proved that Indian companies were strong enough to compete in international markets.

The two countries could cooperate in areas such as agriculture, telecom, power and infrastructure and also look for other sectors of mutual interest, he said.Stating that US was also committed to the reduction of the non-tariff barriers, Celeste said that both the countries could work out a solution to solve the issues relating to labour laws and other contentions issues.