US "cautiously optimistic" of India reforms agenda: Froman

The US today said it is "cautiously optimistic" of reforms being undertaken by the new Indian government even as it termed steps like raising FDI cap in defence and railways as positive signs.
"We have already seen some positive signs: projects approved, foreign equity caps in key sectors such as defence and railways lifted. But we have also seen certain tariffs increased, and there is a long way to go on reform," US Trade Representative Michael Froman said here.
"So, we are optimistic, but we are cautiously optimistic. There remains great potential for further liberalisation, structural reform and the facilitation of business. And we look forward to addressing that agenda in the Trade Policy Forum as well," he said.

The US-India Trade Policy Forum (TPF) is a government-to-government trade dialogue aimed at increasing bilateral investment between the two nations.
Froman will co-chair the Trade Policy Forum along with Commerce and Industry Minister Nirmala Sitharaman tomorrow.
The new government has hiked the FDI cap in defence to 49 per cent and liberalised the FDI policy for the railways.

Froman also said the bilateral trade has increased to USD 100 billion, five-fold since 2001 and that has supported thousands of jobs.
"...But still there has been incredible amount of opportunities that is waiting to be unlocked," he said.
Meanwhile, US India Business Council (USIBC) and AMCHAM said resumption of the Trade Policy Forum represents another important step towards strengthened trade relations between the US and India.

Stating that it is in India's interest to have a strong and world class IPR regime, the USTR said patents, trademarks, piracy, counterfeiting, compulsory licencing are "challenging issues and dealing with them directly is critical if India has to play a leadership role in the knowledge economy" and also to become a digital India.
"It is very much in US interest that India succeeds...The question is what can we do through our engagements in trade and investments to support these objectives," he said, adding that "incentivising life-saving innovations and promoting affordable access to quality healthcare and safe medicine will benefit all Indians and Americans. Indeed, India is home to many innovative ideas for delivering cost-effective healthcare".