The Hindu Business Line : India, US all set to expand high tech trade

(From left) Mr Robert O. Blake, Charge d'affaires, US Embassy in India; Dr S. Jaishankar, Joint Secretary (AMS), Ministry of External Affairs; and Dr Amit Mitra, Secretary-General , FICCI, at a seminar on strategic trade controls in the Capital on Tuesday. — Kamal Narang

New Delhi , July 12

INDIA and the US are poised to expand high technology commerce and move out of a sourcing relationship to a business relationship that would raise the demand on the American system, according to a top Government official.

Speaking at a US-India High Technology Co-operation Group (HTCG) seminar on `Strategic Trade Controls', organised by FICCI, Dr S. Jaishankar, Joint Secretary, Ministry of External Affairs (MEA), said that the complexity of Indian industry was going to create additional demand for dual-use technology.

He expressed confidence that a better climate for greater high technology commerce would be created after the Prime Minister, Dr Manmohan Singh's upcoming visit to the US. Bilateral high technology trade has gone up more than three times from $26.78 million in 2002 to $90.06 million in 2004.

Dr Jaishankar, who is a principal negotiator from the Indian side in the Next Step in the Strategic Partnership (NSPP) with the US, also said that the Governments of both countries have established an enabling framework for high technology trade.

He added that the systems that had been put in place are beginning to address the two concerns of end-use and diversions.

However, he expressed disappointment that trade and industry in India was not taking full advantage of the framework.

"There has to be a much more forward leaning, much more aggressive and exploitative approach about what the two Governments have created. We need to push the envelope on this."

Dr Jaishankar also said that in the last one year, India has established a database that assists the US system with information about the bona fides of importers in India and provides information about the veracity of the end-use declaration.

Meanwhile, both countries are working in tandem on other initiatives that are designed to send out a message that India is a safe destination and also a safe re-exporter.

"Apart from what we are doing within the HTCG framework, India is discussing with the US other initiatives like the container security initiative," Dr Jaishankar said.

He expressed the hope that in the coming days the rate of growth in high technology trade would exceed the general rate of trade growth between the two countries.

Mr Robert O'Blake, Charge d'affaires, US Embassy in India, said the Indo-US partnership in high technology trade would get a shot in the arm with the setting up of a CEO Forum later this year.

He saw much greater potential on strengthening trade between India and the US, especially in Defence, biotechnology, and nanotechnology.

Mr Steven Goldman, Director, Office of Non-Proliferation and Treaty Compliance, said that doing business with the US on controlled trade items was never easier than it was now mainly because of serious attempts at streamlining of procedures.

"Our endeavour is to bring home to India that trade expansion and security are not conflicting but complementary values," he added.

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