Ahead of Narendra Modi-Donald Trump meet, US lawmakers pitch for ‘opening up of market’ in India

India is accused of failing to capitalise on the priority granted to New Delhi by Obama administration over the past couple of years.

Updated: June 25, 2017 9:21 PM IST

By Mohammed Uzair Shaikh

Ahead of Narendra Modi-Donald Trump meet, US lawmakers pitch for 'opening up of market' in India
Narendra Modi being welcomed, on his arrival at Joint Base Andrews, Washington DC, USA (image: PIB)

Washington, June 25: Top lawmakers of the United States of America appealed President Donald Trump to pitch for removal of trade and investment barriers in India during his meeting with Prime Minister Narendra Modi. The delegation of lawmakers, comprising of both the Democrats and Republicans, have sent a note to the President, highlighting the caps and restrictions imposed by India on foreign trade, despite bilaterally committing itself to free market principles with US.

“Many sectors of the Indian economy remain highly and unjustifiably protected, and India continues to be a difficult place for American companies to do business,” the Congressmen said, further adding the India was ranked 130th out of 190 countries in the 2017 World Bank report for ease of doing business.

The Congressmen miffed with India’s ‘imposition of restrictions’ include influential lawmakers – Republican House Ways and Means Committee Chairman Kevin Brady, Ranking Member Richard Neal, and Republican Senate Finance Committee Chairman Orrin Hatch and Ranking Member Ron Wyden. They accused India of “severely underperforming” on the bilateral economic front.

The list of barriers articulated by the lawmakers, “a long one,” claimer reports, include inadequate protection of intellectual property rights, and inconsistent and non-transparent licensing and regulatory practices, and most importantly high duties and tariffs.

The Congressmen also complained over the lack of restrictive foreign equity caps for financial, retail, and other major services sectors, barriers to digital trade and Internet services and limitation on foreign participation in professional services.

India is accused of failing to capitalise on the priority granted to New Delhi by Obama administration over the past couple of years.

According to Reuters, the lawmakers could be hinting towards the ‘Make in India’ project of Prime Minister Modi, which may be viewed as a restriction by the investors. However, the Indian officials said there is no possibility of compromising with the Make in India principles.

The meeting between PM Modi and Trump, at the first ever White house dinner hosted by the latter, comes in the wake of friction between the Indo-US ties. The rift turned apparent after the US president openly condemned India and China as ‘worst polluters’, further adding that the Paris Climate Accord benefited them in an unjustified manner.

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