'US removing 9 Indian cos from Entities List will boost trade'

The Confederation of Indian Industry (CII) today said the US' decision to remove nine India space and defence related companies, including those from ISRO and DRDO, from its Entities List, will help in boosting high technology trade between the two countries.

Removal from the Entity List eliminates a licence requirement specific to companies for export purposes.

Meeting the long pending Indian demand, the Obama Administration on the eve of India's Republic Day removed from its entities as many as nine India space and defence related companies, including those from the Indian Space Research Organisation (ISRO) and Defense Research and Development Organisation (DRDO).

"These first steps will go a long way in strengthening our strategic partnership and boosting high tech trade," the chamber said.

The entities being removed include Bharat Dynamics, Armament Research and Development Establishment, Defense Research and Development Lab, Liquid Propulsion Systems Centre, Sriharikota Space Centre, and Vikram Sarabhai Space Centre.

It said that while these are positive initial steps, a lot more remains to be done in realising the full potential of the US-India partnership in high technology.

"Ongoing initiative like High Technology Cooperation Group (HTCG), Joint Science and Technology Commission and recently launched Indo-US R&D Endowment Fund for Innovation can be leveraged in this direction," it added.

US Secretary of Commerce Gary Locke will lead a business delegation on a high-tech trade mission to India next month, it said.

Locke would visit Delhi, Mumbai and Bangalore.