US Vice-President Joe Biden urged India to negotiate with Washington to remove 'barriers' to free market access and further open its doors to foreign investment for boosting economic ties between the two nations.
While addressing business leaders here today, Biden stressed on the need for a 'candid' approach in talks related to intellectual property, market access or more foreign direct investment.
"Expanding trade between India and United States can and should be a central part of the story. But that requires us to be candid with each other about the obstacles that exist when it comes to a business environment, protection of intellectual property, requirements that companies buy local contents, limit on foreign direct investment, inconsistent tax treatment and barriers to market access," he said.
While accepting that these were 'tough problems' Biden said: "We all know they have to be negotiated and worked through in order to meet the potentials of this relationship."
U.S. business groups have urged Biden to press India's leaders to 'reverse course' on a number of government policies which hurt American companies that do business in India.
The drug manufacturers from the US are particularly upset by New Delhi's decisions that have denied patent protections for certain drugs made by Pfizer, Novartis and Bayer to the benefit of India's generic drug companies.
India has already relaxed foreign direct investment (FDI) rules across several industries, including telecom, single brand retail and oil and gas, in a bid to lure capital inflows, prop up a sliding currency and accelerate growth.
Biden said he was optimistic of Indian economy bouncing back from its current subdued levels and said America desired to be partner in that growth.
"We Americans are confident that India will continue to rise because we believe that you will take the additional steps necessary to spur further growth and enhance your economic influence around the world and in the process lift the whole world. We want to be your partner in that venture in lifting the economies of the world," he said.
Speaking on China, Biden said there were all kinds of speculations related to Washington's relationship with Beijing.
"I have heard people talk about US-China relationship as everything from the next Cold War to next G2. Neither of those characteristics is accurate. But like India we have a complex relationship with China. It has important elements of co-operation and also competition and we want it to be constructive," he said.
Recently, the United States and China agreed on July 11 to restart stalled negotiations on an investment treaty, with Beijing dropping previous efforts to protect certain sectors of its economy from the start.
China and the United States began negotiations on a pact to govern bilateral investment in 2008 under then-U.S. President George W. Bush, but discussions were put on hold after President Barack Obama took office the following year.
Hinting at a trilateral dialogue with China, Biden said that India and US had already started a 'strong' dialogue with Japan.
"We are three big nations- China, India and United States with our own perspectives; and we have significant common interests. All three of us, and the entire region would benefit if we coordinated and worked more closely. America and India have already built strong trilateral dialogue with Japan. It's past time, we launch one with China," he added.
The relations between New Delhi and Bejing were also strained this year following repeated incursions by the Chinese troops along the disputed border stretch in northern Ladakh region.
Biden also indicated to the business leaders in Mumbai that US government had already instructed negotiators to progress the bilateral investment treaty with India.
"I am pleased that our countries are re-engaging in talks towards bilateral investment treaty. Both our governments have instructed our negotiators to see what progress can be made by the time Prime Minister Singh visits Washington this fall. In the United States, we welcome Indian business investing in the United States," he said.
Bilateral trade between the United States and India is worth almost $100 billion per year.
U.S. Vice President Joe Biden arrived in New Delhi on July 22 on a four-day state visit to boost economic and defense ties between the two countries.
