India needs to open up its economy: Locke

Lalit K Jha
Washington, Feb 4 (PTI) India needs to open up its
economy through steps such as reducing tariff and non-tariff
barriers, lifting restrictions on foreign direct investment
(FDI) and improving the protection of intellectual property,
US Commerce Secretary Gary Locke said on Thursday.
Locke leaves for India on Friday for a week-long trade
mission at the head of a delegation comprising some 24 US
companies from the fields of civil nuclear, hi-tech, security,
civil aviation, information, communication and technology.
Noting that India faces huge developmental challenges --
ranging from upgrading infrastructure to medical devices, to
energy and upliftment of the quality and standard of life of
its people -- Locke said this is where American companies can
facilitate the Indian government's objectives.
"But to take advantage of these opportunities, India
itself would have to take further steps to open up its
economy, including reducing a variety of tariff and non-tariff
barriers, lifting restrictions on foreign direct investment
and improving the protection of intellectual property," Locke
said at a journalist round table on the eve of his departure.
Observing the concerns that the US and other
international businesses have with respect to India's business
environment need to be resolved, he noted, however, there was
no quick procedure.
"But we aim to start that process through the trade
mission next week," he said, adding that the United States has
not given up on market access issues with India.
"We believe it is in the economic interest of the Indian
people to open up this economy. People in both countries would
benefit from that," Locke observed, adding that the Obama
Administration is pushing for mutually beneficial trade.
"No doubt that India is moving in the right direction and
will be able to work through a lot of these issues. When you
look at the last 20 years, India has opened its economy and
come further and faster than anyone ever could have
predicted," he said.
Locke argued that expanding US exports to India represent
the kind of mutually beneficial trade that creates jobs in
both India and the US and will help improve the quality of
life for the people of India.
"This is really a win win opportunity for the people and
businesses of both the countries," Locke said.
The recent export control announcement that removed
Indian companies like Indian Space Research Organization
(ISRO) and Defence Research and Development Organisation
(DRDO) from the list of entities denied access to sensitive
technologies has opened the door for increased high technology
trade and cooperation between India and the United States, he
said.