 "USIBC seeks relaxation in FDI norms in insurance and defence")
It also urged Finance Minister Arun Jaitley not to make changes in income tax laws with retrospective effect in the budgetary proposals to be unveiled in Parliament.
"We respectfully request that the GOI (Government of India) ensure that any changes to India's income tax law will not be retrospective, as well as provide clarification that recent changes to that effect will be legally binding and not subject to arbitrary application," USIBC said in a pre-budget memorandum submitted to the Union Finance Minister.
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The USIBC remains committed to supporting India across all sectors in implementation of policies that support the exciting momentum underway which will continue to propel India's growth story, the pre-budget memorandum said .
USIBC believes that the next step in retail sector development is lifting current restrictions in foreign direct sales to Indian consumers via e-commerce, it said.
The council urged the Union Finance Minister to ensure that transfer pricing principles are applied in a fair and consistent manner for all taxpayers, as well as allow a reasonable method for determining transfer pricing.
"On defence, USIBC looks forward to positive signals indicating clarity and allowance of greater than 50% FDI in India's defence sector.
"This enables greater defence manufacturing cooperation, wider scope of technology transfer, and expedient development of India's Defence Industrial and Technological Base," it said.
Passage of the Insurance Laws (Amendment) Bill, 2008 is an urgent business reform needed to boost domestic job creation and send a strong signal to the global investment community that India is "open for business," the memorandum said.
"We strongly support the expeditious passage of this critical foreign investment reform including the provision to raise the existing 26% FDI cap to 49%, unfettered and without voting rights restrictions.
"It is an imperative that the opening be full and "clean" without these voting rights compromises which are harmful to global investor confidence," USIBC said.