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India-U.S. action plan to step up hi-tech trade

NEW DELHI: India and the United States have formulated an action plan to step up cooperation in high technology areas. It includes a time table for reviewing controls on export of high-tech items to India and simplifying U.S. policies.

This was decided at a meeting of the India-U.S. High Technology Cooperation Group (HTCG) here on Friday. The U.S. delegation was led by Under Secretary of Commerce for Industry and Security Mario Mancuso and the Indian delegation, by Foreign Secretary Shiv Shankar Menon.

India recognised and welcomed the U.S. administration’s announcement of its dual use export control reform initiative. But on the Validated End User (VEU) Programme, notified last year by the U.S. government, both sides agreed that further discussions were required as “U.S. export control policies should keep pace with the transformed relationship between India and the U.S.,” according to a joint statement.

Under the VEU, the U.S. examines the credentials of a foreign company undertaking high-tech trade with its firms. If it is satisfied with the company’s track record, the U.S. issues a VEU certificate that precludes the need for the foreign firm applying for a licence each time it imports a high-tech product. However, India is unhappy with a clause that calls upon companies to open their sites for inspection. In India, most of the companies in the high-tech sector are state owned, many contributing to the country’s strategic programmes.

Set up in 2003, the HTCG is working on four areas to step up bilateral trade: defence & strategic trade, biotechnology, information technology, and nanotechnology. The effort also involves private sector participation.

On nanotechnology, the two sides agreed to focus on commercial application in the areas of health, energy, potable water and sustainable development. In biotechnology, both governments agreed to work towards capacity building in life sciences. They also decided to engage in harmonising the regulatory systems in medical devices, pharmaceuticals and biotechnology so that U.S. companies could gain more market access to the burgeoning Indian medical devices market.

On information technology, the two sides plan to trade in advanced electronics and software, high performance computers, encryption and next generation technologies. In defence, the group agreed on a plan to boost high technology transfers and trade that would address India’s defence offsets policy and encourage collaborations.

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