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All.BizUnited KingdomNewsEconomyOpen up economy: US to India

Open up economy: US to India

11 Feb 2011 09:51 | Economy

US commerce Secretary Gary Locke has urged India to open up its economy further by removing tariffs on civil aviation and medical devices as well as non-tariff barriers such as mandatory technology transfer on telecom equipment.

Such measures would protect domestic industry in the shortterm , but would hit foreign investment and innovation in the longer term, Locke told the apex software industry association, Nasscom, on Friday.

Describing the partnership between the two countries a "partnership of equals," he said, "To realise the full potential of our economic co-operation , we hope India will address concerns of foreign businesses about India's business environment."

"While tariffs have come down, there remain aspects like 19 levy on civil aviation aircraft and 26% on medical devices. There are other non-tariff barriers like mandatory technology transfer requirement on telecom equipment, limited FDI in key sectors and inadequate IP protection," he said.

Citing a World Bank report on ease of doing business, which ranked India as 134th out of 183 countries, he asked the country to make it easier for foreign companies to participate in India's growth story . Echoing US President Obama's call to create more jobs, Locke said: "The next step in US-India economic partnership will be how US can help India meet its ambitious growth plans and how we can create jobs both in India and the US." He termed the trade between the two countries, which doubled between 2004-2008 , as mutually beneficial.

Source:  indiatimes

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