Ficci, CII pitch for removal of technology denials by US

India’s leading business and industry chambers Confederation of Indian Industry (CII) and Federation of Indian Chambers of Commerce and Industry (Ficci) on Saturday said that the US government during the ongoing visit of President Barack Obama should announce the removal of export restrictions on dual use technologies.

Besides, CII and Ficci expressed strong resentment over the US government’s move to double the visa fee for skilled workers to fund security on the Mexico border and its proposal to end tax breaks for companies that outsource. They called for the removal of curbs on outsourcing.

Ficci’s president Rajan Bharati Mittal argued that the time was quite ripe for the US to take concrete decision on technological denials applicable for India. “Since last four years, Ficci has been continuously pursuing the reforms in export restrictions and technological denials. We strongly feel some positive announcement is expected from the US President in this regard.”
 
CII president Hari Bharatiya echoed similar views and said that the present export restrictions by the US are the matter of serious concern as it was affecting the technology transfer for India’s military and defence sector. “India offers huge potential for the US companies and thus the US government should remove these restrictions,” he added.
 
On the outsourcing controversy, both Mittal and Bharatiya opined that it was political rhetoric. Mittal said “Ficci would aggressively take up this issue with the President.

Indian companies have invested huge amount in the US and it has helped create more jobs for the US.  The partnership has to be two way and thus we sincerely hope the US will amend its proposal on outsourcing.” He asserted that the electoral defeats of the Democrats may lead to change in the US government’s stand on outsourcing.
 
Bharatiya said that the political rhetoric would die soon. “Outsourcing has helped the US in the IT sector. Similarly, in defence sector too n investment of $1 billion by the Indian companies create 8,500 jobs to the US people. Thus, the US government will have to make changes in its proposal on rise in visa fee and abolition in tax breaks,” he added.
 
On the opening of India’s banks and insurance sector, the Ficci director general Amit Mitra said the US needs to first remove restrictions on the opening of bank branches by Indian banks there and also curbs on insurance plans by Indian companies.  “Nearly 37 states in the US do not allow FDI in the insurance sector,” he said.

Meanwhile, CII director general Chandrajit Banerjee said that the US and India can boost trade and investments in the field of high technology, education, agriculture, defence, nuclear and clean energy.