The US Commerce Secretary, Mr Gary Locke, on Monday expressed concern over India's “tariff and non-tariff barriers.”
He said these “market barriers” of India may protect some domestic industries in the short term, but in the long term will limit Foreign Direct Investment and imports that can enhance innovation within Indian partner companies, and increase the standard of living for India's people.
“Even though India has made tremendous strides to open up its economy, there is much work left to be done,” he said.
Speaking at a CII conference here, Mr Locke said joining him on this trip are 24 leading American companies — in civil nuclear, defence and security, civil aviation, and information and communications technology sectors — looking to pursue new opportunities in India.
He said the US firms can partner with Indian high-technology companies to build high-speed Internet infrastructure so that doctors in rural India can seek instant consultations with doctors in metros.
Modernisation
American firms can provide technologies to modernise India's power sector and deliver electricity to millions of rural Indians, Mr Locke said, adding that US companies can also help India build the world's best planes, roads and rail lines needed to transport Indian-made goods throughout the country and the world.
Pointing out that India will need an additional $1.2 trillion by 2030 to construct new roads, metros and subways as well as to upgrade its electric grid, water, communications and transportation infrastructure, Mr Locke said US businesses can work with India to help achieve these ambitious development goals.
However, he said, for this to happen, New Delhi should address US businesses' concerns including India's tariffs of 19 per cent on civil aviation aircraft, 30 per cent on pistachios, 26 per cent on X-ray film and 50 per cent on apples.
He said the US firms also have concerns about India's non-tariff barriers including: Mandatory technology transfer requirements for telecom equipment, FDI limits in key sectors and inadequate protection of intellectual property rights.
America was seeking a level playing field for its companies, he said, adding that Washington was merely asking for the same treatment foreign companies and investors receive in America.
Stating that the US has been one of the world's most open economies, he said, in fact, Indian entrepreneurs in the US are responsible for hundreds of thousands of American jobs.
“And we are happy to have them not just because of the economic value they create but because they have so enriched the life and culture of the US,” he said. He termed as “unfounded” fears that foreign companies would hurt US industries or foreign investors would try to control America's destiny.