The Federation of Indian Cham-bers of Commerce & Industry president K K Modi has written to Frank Pallone Jr, chairman of the Congressional Caucus of India in Washington, conveying that the sanctions are affecting the operations of US companies in India.
Modi has urged Pallone to speak against the rationale of imposing sanctions in the aftermath of the nuclear tests by India and create a strong public opinion for lifting "such unwarranted measures" at the earliest.
"As we have made it amply clear, nuclear detonation by India is not a hegemonistic assertion but a hard option driven by security compulsions. Our commitment for global peace and disarmament has never been under question," he has said.
The Ficci president has also thanked the Congressman for his public statement against the suggestion from some quarters that the most favoured nation be denied to India unilaterally.
"You have held the view that sanctions are entirely inappropriate and counter-productive approach with unintended consequences for the poor and the working class. This philosophical generalisation has come from your empathetic disposition, unflinching faith in the democracy and values of human rights," says the letter.
Dwelling on the threat of sanctions for the economies of the two countries, the Ficci president has said: "We have got feedback from many important US corporations operating in India that their centuries-old businesses and investment in India are being adversely affected with the sanctions."
Modi has brought to Pallone's notice that US banks may have to pay fines or even close down their Indian operations if the US administration applies a strict interpretation of the American anti-nuclear-proliferation law and US banks are made to comply with them.
This is in the context of the liquidity ratios and deposits with the Reserve Bank of India that the foreign banks are required to maintain. Expressing regret that the sanctions had been imposed when the Indo-US relationship was intensifying and becoming broad-based, Modi has pointed to the commonality of views and perception on many issues of international significance.
Modi has observed that the US is India's largest trading partner and accounts for maximum investment in India.
"The historical economic ties between India and the US have been given a new meaning and thrust by the unprecedented interest by the US businessmen in India in the recent years. India is now considered a major investment destination by US investors," he has said.
The Congressional Caucus of India is seen as consisting of about 100 members of the US Congress who have exhibited a sympathetic attitude towards India on various occasions.
