US Companies Seek Obama's Help to Improve India Business Climate
New York: Ahead of his meeting with Prime Minister Narendra Modi next week, a US trade advocacy group on Friday sought President Barack Obama's help in improving the business climate for American companies in India.
Representing voices of a select group of companies mostly from the pharma and manufacturing sector, the Alliance for Fair Trade in a letter to Obama urged him to discuss necessary policy changes to improve the business environment for American companies in India.
The alliance has a track record of raising such issues in the past and launching anti-India campaigns on issues related to intellectual property and pharma sectors.
In the letter, US business and manufacturing groups welcomed the renewed focus on high level commercial dialogues with the goal of creating a mutually beneficial US-India economic relationship.
They noted that implementation of trade reforms will boost India's long-term economic growth and foster market access for American innovators, exporters, and investors.
"India's high tariffs, use of forced localisation barriers, and weak intellectual property protection and enforcement are not only thwarting manufacturers' access to India, but denying Indian citizens and companies access to best-in-class products," said AFT co-chair and National Association of Manufacturers vice president of international economic affairs Linda Dempsey.
"To boost foreign investment and create a thriving and innovative economy, we hope that India will embrace international standards and ease the counterproductive and harmful trade burdens that hurt both US businesses and India's ability to attract high levels of investment," she said.
"American innovative companies are encouraged by the discussion of necessary policy changes to enhance intellectual property rights and enforcement in India," said Patrick Kilbride, co-chair of AFT and executive director for international IP policy at the US Chamber of Commerce's Global Intellectual Property Centre.
"We look forward to continued dialogue between these leaders to allow both countries to capitalise on the opportunity for mutual growth and innovation," he said.
"A level playing field is the best strategy for Prime Minster Modi to spur innovation and draw investments from across the US economy," the letter said.
"In order to attract investment, India must begin to put in place policies that provide legal and regulatory certainty for US companies seeking to invest in the market," it said.
"Improving India's broadband penetration underpins Prime Minster Modi's Digital India project, so it is in India's interest to revise policies that discourage broadband investment like tariffs and onerous testing requirements on imported information and communication technology products," it said.
"The Prime Minister recognises the immense buying power of Indian consumers of movies and music, but poor intellectual property enforcement and ubiquitous access to pirated goods critically undercuts these industries," it added.
"Addressing these measures and others would help reinvigorate US-India bilateral trade and investment ties, build a deeper and more reciprocal commercial relationship, and realise the tremendous promise the relationship holds. We stand ready to work with your administration toward that end," said the letter to Obama.
