John Chambers, Chairman of the US-India Business Council, said that the American industry is keenly watching the developments in India related to the roll out of the Goods and Services Tax (GST), which he believes should be speedily implemented.

In an interview with BusinessLine, Chambers, who is Executive Chairman, Cisco Systems, said the India-US Strategic and Commercial Dialogue (S&CD), which begins on Tuesday, will not address New Delhi’s concern on visas. Excerpts :

What will be the likely deliverables from the second India-US Strategic and Commercial Dialogue this year?

The two governments will continue to discuss strategic topics including climate change cooperation, national security and counter-terrorism, and priorities in the Indian Ocean region. Top economic priorities will also be addressed such as positioning US and Indian companies for success at the sub-national level, including more engagement between American governors and Indian chief ministers.

Will the S&CD help in addressing some of the economic irritants between both countries such as the hike in visa fees and the Totalisation Agreement?

USIBC has long supported free flow of labour and totalisation reform. While these issues are likely to be raised at the S&CD, we are focusing on US Congress, which has a greater role in moving the needle on these issues.

Do you think the Indian government has done enough to soothe the nerves of US investors as far as taxation issues are concerned such as the retro tax and transfer pricing issues?

The Council applauds the government’s continued efforts to create a stable and certain tax environment to encourage enterprise and ease of doing business. We are also pleased to see that the budget supports the removal of any retroactive taxation.

At present, India and US are having a bitter face-off at the WTO Dispute Settlement Body. How does this augur for business at large?

I would not necessarily characterise India-US trading disputes as “bitter.” Both countries are using the WTO mechanisms to solve a dispute, an apt platform for compliance-related matters. Considering the success US industry has been having in India, these cases are outliers as one or two disagreements, but in isolation are not reflective of the growth and fortified trade relationship we now have together.

How is the US industry reacting to the recent stalemate in talks on the US-India Bilateral Investment Treaty (BIT)?

Liberalising trade is good for both countries, which is why USIBC encourages India’s steps towards trade liberalisation including supporting its interest in Asia-Pacific Economic Cooperation (APEC), and having meaningful conversations on India’s interest in TransPacific Partnership (TPP), the multilateral trading system, and resuming negotiations on a US-India Bilateral Investment Treaty. We encourage both governments to redouble efforts to find a step forward. US investors understand the need to have a BIT with India.

How can USIBC help in meeting the target of $500 billion two-way trade in the near future?

We have had some hurdles in achieving greater trade targets which can be attributed to global and domestic factors such as the US recession in 2008-09 and the economic slowdown in India in 2012-13. In order to move towards the $500 billion target, we must continue to support Prime Minister Modi’s Make in India Initiative. As more goods are made in India, consumers in the US will be ready to purchase them.

Will the S&CD continue when a new government takes over in US?

The two governments have used the vehicle of this dialogue to advance shared priorities of generating economic growth, creating jobs, and strengthening the middle class. To that extent, the dialogue was upgraded in September 2015, creating a “commercial track.” This change elevated discussions of economic and commercial issues to the cabinet level alongside the central matters of security and global diplomatic concerns, and was upgraded to the title of “Strategic and Commercial Dialogue.”

Is the US industry enthused now that the GST Bill is moving towards fructification?

The American industry, and the the Council, is certainly buoyed by the forward movement towards the GST regime. As GST is sure to be a game-changer for the Indian economy, not only as a signal for a higher ranking on the World Bank’s ease of doing business but a huge step toward streamlining domestic supply chains and fixing contradictory State tax regimes. We await its speedy implementation next year.

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