To help achieve bilateral trade target of $500 million.
By Rajiv Theodore
NEW DELHI: Come May, a change of guard seems inevitable at the center since the United Progress Alliance (UPA), led by the Congress (I) Party, came to power in 2004.
Keeping this scenario in mind, the US trade advocacy body, the United States-India Business Council (USIBC), skippered by former Unocal chief executive in India Ron Somers, has come out with a ‘wish list’ of to do things for whosoever lands at the helm in New Delhi after the polls.
The ‘wish list’, if implemented, would help achieve the annual bilateral trade target of $500 billion which involves resolving outstanding issues related to the civil-nuclear deal, to hike foreign direct investment in sectors like defence, E-commerce, insurance and assure a level-playing field for US companies, especially in the financial sector.
The 40-page document from USIBC has also urged for hiking the FDI from 26 per cent to 74 per cent that would increase the presence of US companies in co-production, joint manufacturing and industrial partnership with Indian industry.
The document seeks for the abolition of the “5 year, 20 aircraft rule,” to allow low cost carriers and newly formed ventures to take off. It also seeks for the reduction in the general-aviation access clearance time to one to two days and roll back of the duty on the import of private aircraft, as this has significantly stunted growth in aeronautical infrastructure.
USIBC has also urged India to accept the multi-stakeholder Internet governance model. Calling for freeing E-commerce in the country by removing FDI limits, the wish list also wants India to implement policies that promote freedom of expression online. It does not want Internet companies to be burdened with the intention of blocking content without due-process procedures.
USIBC also urges ironing out legal and regulatory issues critical to full implementation of the US–India civil nuclear agreement, enabling US companies to sign and perform Early Works Agreements and future contracts.
It also supports a strong manufacturing policy as well as the implementation of India’s Infrastructure Debt Fund – an effective vehicle that mobilizes investments. It has also called for establishment of US law firms into India.
“Derived from USIBC’s 300 member-companies, both Indian and American, including 250 of the largest US companies investing in India, this ‘Way Forward Agenda 2014-2015’ presents the many issues we all need to focus on to deepen the two-way partnership between our dynamic commercial sectors,” USIBC President Somers said, in a statement.
In the final analysis, the fact remains that Indo-US relations are at a pretty low point and the last thing you want is the future prime minister of India nursing a deep grudge against the US.
Despite myriad controversies and trade restrictions, as of today the defence deals won by US firms with India is poised to cross $15 billion. India today is the largest defence market for America surpassing even Saudi Arabia.
To contact the author, email to editor@americanbazaaronline.com