Indian industry also has concerns: Rao

Days after lawmakers at a Congressional hearing were told by the US corporate sector on the hurdles India poses to American companies, New Delhi’s top diplomat in the country said similar to American businesses Indian industry too has some concerns.

“Just as US businesses have some concerns, Indian industry has also highlighted its concerns. We are told that the Indian IT industry, which according to a report from Nasscom, employs over 100,000 in the US, and supports another 200,000 jobs including indirect ones, faces regulatory challenges here.

”..We are also unable to even begin a dialogue with the US on a bilateral Totalization Agreement,” Indian Ambassador to the US Nirupama Rao said yesterday.

“As the Indian economy grows stronger, more investments will flow into the US from India, thus making our economic partnership more robust, vibrant and synergistic. The construction of India-US trade and commercial ties is firmly positioned in and indeed underpins the bilateral Strategic Partnership,” she said.

In her address to the Center for Strategic and International Studies (CSIS) — a Washington-based think tank, Rao said, “the key drivers of deeper bilateral business partnerships include sustained economic growth in India and consequent demand for capital and technology to meet its huge developmental priorities.

“..And India’s position as a key global hub of new world trade routes and trading arrangements; in the establishment of new supply chain networks; and as one of the fastest growing markets in the world,” she added.

Another driver to this relationship includes India’s focus on innovation and its unique strengths in knowledge industries that have made India one of the largest R&D centres for many of the top notch US companies including General Electric, Honeywell, and IBM.

In an apparent reference to the complaints of the US corporate sector towards India and its policies, Rao said New Delhi too has its own list and issues with US.

“A meeting of the TPF we hope will not be delayed much longer because it is through regular dialogue that we can build common ground and address concerns in a well-reasoned, rational way,” she said.

Adding that going forward, and in order to negotiate the global economic terrain better, India and the US perhaps also need to explore new trade and economic cooperation arrangements.

“This is where we need to move consciously and with momentum on the Bilateral Investment Treaty, as also train our sights on the exploration of the advantages, or otherwise, of any future bilateral economic partnership arrangements,” Rao said.

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