India has said it will go for calibrated FDI liberalisation in sectors like defence and retail amidst the US demand for opening different segments for foreign investors.
Commerce and Industry Minister Anand Sharma, who participated in the Indo-US CEOs Forum yesterday, said: "(In) defence and retail trade. We favour calibrated (foreign investment) liberalisation on account of domestic sensitivities."
He said that his government's initiatives like simplification and consolidation of the FDI policy would go a long way in improving business environment in India.
FDI is not allowed in multi-brand retail, which is dominated by the neighbourhood kirana stores and is a politically-sensitive topic. However, foreign players are permitted in wholesale trade as also in single-brand retail,
At present 26 per cent FDI is allowed in defence sector.
Sharma also met the US Trade Representative Ron Kirk and the two leaders agreed to enhance opportunities for bilateral trade and investment to create jobs in both the countries.
"Kirk urged India to address longstanding impediments such as investment caps, agricultural market access barriers, high tariffs, intellectual property rights and the need for continuing regulatory streamlining and transparency," the USTR spokesman Matthew Lawrence said in a statement.
Sharma was leading an official and industry delegation for the second meeting of the Forum co-chaired by Tata Group Chairman Ratan Tata and Honeywell Inc CEO Dave Cote.
The meeting was also attended by Finance Minister Pranab Mukherjee and Deputy Chairman of Planning Commission of India Montek Singh Ahluwalia.
The US official delegation included Secretary of State Hillary Clinton, Treasury Secretary Timothy Geithner, Commerce Secretary Gary Locke, US Trade Representative Ambassador Ron Kirk and Director of National Economic Council Larry Summers.
Sharma also welcomed the CEO Forum initiative on the launching of a $1 billion venture capital/private equity fund for clean energy technology development projects.
He also lauded the initiative of the Forum to establish a joint Indo-US Drug Discovery Fund and said the move would enhance the research and development efforts.
Sharma and Kirk also reviewed the implementation of the India- US Trade Policy Forum Framework for Cooperation on Trade and Investment singed in March 2010.
