US Commerce Secretary Gary Locke today called upon India to provide a level-playing field for American companies. He reiterated that India needs to open up by removing tariff barriers for attracting more and more foreign direct investments.
“Even though India has made tremendous strides to open up its economy, there was much work left to be done. While many tariffs have come down, others remain, ranging from 19 per cent levies on civil aviation aircraft and 30 per cent on pistachios to 26 per cent on X-ray film and 50 per cent on apples, Locke said at the meeting organised by Ficci. He also raised similar issues at his meeting with Reliance Industries CMD Mukesh Ambani, Nicholas Piramal chief Ajay Piramal and Zee TV chief Subhash Chandra.
He said there are other non-tariff barriers that limit trade and investment, including mandatory technology transfer requirements for telecom equipment, limits on foreign direct investment in key sectors and inadequate protection of intellectual property rights. “These measures explain why India was still ranked only 134 out of 183 countries on the World Bank’s Ease of Doing Business Report.”
“India’s market barriers may protect some domestic industries in the short term, but over time, these barriers will limit foreign direct investment and imports that can enhance innovation within Indian partner companies and increase the standard of living for all of India’s people,” the commerce secretary noted.
Locke said all that America seeks was a level-playing field for its companies, where the cost and quality of their products determines whether or not they win business. “In seeking that level-playing field, we are merely asking for the same treatment foreign companies and investors receive in America.
The United States is now, and has historically been, one of the world’s most open economies. We are the number one destination for foreign direct investment in the entire world.”
“Companies and innovators know that when they come to the US, they will have largely unfettered access to our markets. And they know that their ideas and inventions will be protected.” He said of the 167,000 patents granted by the US Patent and Trademark Office in 2009, over 50 per cent of the applications originated in a foreign country.