India's leading industry chambers, the Confederation of Indian Industry (CII) and the Federation of Indian Chambers of Commerce and Industry (Ficci), said the US government should remove export restrictions on dual-use technologies. The two also expressed resentment over the US government's move to double the visa fee for skilled workers to fund security beef-up on the Mexico border and the proposal to end tax breaks for companies that outsource. They called for removal of curbs on outsourcing.
Ficci President Rajan Bharati Mittal argued the time was ripe for the US to take a concrete decision on technology denials. "For four years, Ficci has been continuously pursuing reforms in export restrictions and technological denials. We strongly feel some positive announcement is expected from the US president in this regard."
CII President Hari Bharatiya echoed this and said the present export restrictions by the US were a matter of serious concern as they were affecting technology transfer for India's military and defence sector. "India offers huge potential for US companies and thus the US government should remove these restrictions," he added.
On outsourcing, Mittal and Bharatiya said it was political rhetoric. Mittal said "Ficci will aggressively take up this issue with the president. Indian companies have invested huge amounts in the US and this has helped create more jobs in the US. The partnership has to be two-way and thus we sincerely hope the US will amend its proposal on outsourcing." He asserted the electoral defeats of the Democrats might lead to a change in the US government's stand on outsourcing.
Bharatiya said the political rhetoric would die soon. "Outsourcing has helped the US in the IT sector. Similarly, in the defence sector, an investment of $1 billion by Indian companies creates 8,500 jobs for the US people. Thus, the US government will have to make changes in its proposal to raise the visa fee and abolish tax breaks," he added.
On opening of India's banks and insurance sector, Ficci Director General Amit Mitra said the US should first remove restrictions on Indian banks and insurance companies.
"Nearly 37 states in the US do not allow FDI in the insurance sector," he said.
Meanwhile, CII Director General Chandrajit Banerjee said the US and India could boost trade and investment in high technology, education, agriculture, defence, nuclear and clean energy sectors.
