The perception of the US investors is changing towards India, said Rajat Gupta, chairman, US India Business Council, in Mumbai on Thursday.

"American investors are interested in contributing to the development of the Indian financial sector" despite the Dabhol Power Company fiasco, he said.

The US industry has a lot at stake, as India is an emerging opportunity with a huge market, he said. Joint efforts, he added, are needed to help the industries of both the nations.

After the USIBC's meeting with heads of 40 financial institutions in Mumbai on Thursday, he said there were many issues including development of new markets, securitisation, derivatives trading, capital gains, limits of capital investment and ownership which needed to be looked into.

The achievements of the Indian securities market -- in terms of an impressive regulatory mechanism -- should be highlighted for more funds inflows, said Gupta. He termed the Indian capital market reforms "the best kept secret."

"The Indian securities market is as good as any, if not better, at the risk management and operational levels," he said.

He also said that the USIBC's aim is to enhance Indo-US ties in sectors like IT, biotech, aerospace, defence, engineering goods and automotive parts.

The USIBC, he said, is having discussions with key players of the Indian industry, especially in the financial sector, and in few months would develop a plan for furthering the Indian industry and place it before the policy makers.

On the issue of outsourcing, Gupta said: "The US India Business Council is very actively, yet subtly, involved in allaying the fears in the United States over jobs being lost due to offshore outsourcing."

"There will be a lot of noise over outsourcing and India - being the biggest beneficiary - might face resistance from the West, but the fundamentals are on our side," he said.

Gupta, who is also senior partner-worldwide, McKinsey & Co, said it is important to make known the benefits of BPO to the American economy.

The USIBC is the premier policy-development organisation promoting American economic interests in India.

Also speaking on the occasion, Michael T. Clark, executive director, USIBC said: "The 28-year-old body helps strengthen Indo-US economic relations on trade and investment issues, and foster bilateral dialogue between key business and government decision makers."

He said that the council maintains close ties with the Confederation of Indian Industry, the Federation of Indian Chambers of Commerce and Industry, the National Association of Software and Service Companies, and The Indus Entrepreneurs, and the Indo-American Chamber of Commerce.

He stated that of particular interest to the council were the post-Cancun trade talks.