Kolkata: The sustained growth in India's exports to the US with no similar increase in US exports to India could be a "source of friction" between the two trading partners, US Consul General George N Sibley said.

The one-way growth in trade between India and its largest trading partner US had been "disappointing for us and could be a source of friction (between us) in future", Sibley, who was addressing the award presentation function (2000-01) of the Engineering Export Promotion Council (Eastern Region) today (Oct 31), said.

However, "fortunately, some recent data suggests that US exports are on an upswing after a long period of lagging growth", he said.

During the first eight months of the current year, he said, US exports were up by 27 per cent and going by the trend, "US produced goods sold in India should top $ four billion this year".

Besides the exports, US investment in India in recent years has also been "rather disappointing".

From a peak of over $ 700 million investment in 1997, the annual flow of direct investment flow to India from US has dipped below $ 300 million in 2002, he said.

This, he said, was due to weakening of economic growth in India since 1998 following slowing down of the reform process.

"The need of the hour is a second generation of reforms to sustain India's economic growth," Sibley said.

PTI