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US trade body suggest Indian government to remove regulatory hurdles |
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NEW DELHI: Barely a month before President Barack Obama's visit to India, a US government agency has pulled up India for its restrictive policies, putting pressure on New Delhi to reduce tariffs and align intellectual property (IP) related policies with standards prescribed in the US and Western Europe.
The report 'Trade, Investment, and Industrial Policies in India: Effects on the US' released on Monday lists many areas on which it wants action.
"The main policy barriers include tariffs and customs procedures, foreign direct investment (FDI) restrictions, local-content restrictions, treatment of intellectual property (IP), taxes and financial regulations, regulatory uncertainty, and other nontariff measures," the report said.
It was prepared at the request of the US House Committee on Ways and Means and the US Senate Committee on Finance.
"US exports to and investment in India would be significantly higher if not for Indian policy barriers," said the report issued by the US International Trade Commission (USITC). Bilateral trade between India and the US is nearly $62 billion with the balance of trade in India's favour to the extent of nearly $ 17 billion. Lawmakers demanded action from the Indian government after the report was released.
"We remain concerned about systemic and continuing market access barriers identified in the ITC's report that undermine a marketbased path to development for India and diminish opportunities for US workers and businesses," PTI cited them as saying.
Coming just before the high-profile visit, the report will put pressure on India to address US concerns. "We are at a pivotal moment for the US-India relationship.
Prime Minister Narendra Modi, who recently took the helm of the Indian government, has spoken of a pro-growth vision for India. We are hopeful that we may see a deepening expansion of our long-term trade and investment relationship, which has already risen to nearly $100 billion," the joint statement issued by the lawmakers said.
ET had reported last week that the government held consultations with US multinationals present in India to listen to their problems and find solutions for them. The report said agricultural products and food, financial services, and certain manufacturing products, including pharmaceuticals, were the most affected sectors of US exports.
"Overall, the policies had substantial effects on the operations of about one-quarter of US companies that have affiliates in, or export to, India," the report noted.
It said FDI restrictions affected financial services companies the most. "India maintains equity caps, which heavily affect FDI in a number of industries, including retail, defense, and insurance," the report said.
Source : economictimes.indiatimes.com
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