India has urged the United States to speedily resolve its concerns over H-1B and l-1 work visas involving mobility of skilled professionals and pressed for early conclusion of a Totalisation Agreement to deal with the huge social security payments made by Indian workers without receiving any benefits.
At a meeting of the high-powered US-India Trade Policy Forum held here, Commerce and Industry Minister Nirmala Sitharaman also exchanged a draft on the proposed
Bilateral Investment Treaty, but noted that discussions will have to await a Cabinet clearance of the draft.
US Trade Representative Michael Froman, co-chairing the meeting from the American side, lauded the economic reforms undertaken by the Narendra Modi Government and called for further actions to improve the ease of doing business and attract investment in manufacturing.
“Both sides welcomed the substantive progress in promoting bilateral trade and investment since the last TPF meeting in November 2014,” an Indian statement said, noting that discussions focused on continued engagements to deepen the bilateral economic and commercial cooperation.
In the absence of a totalisation pact, well over $6 billion contributed by Indian workers towards social security has been lying unutilised with the US government. With the increased inflow of Indian professionals in recent years, this cash pile is now said to be growing by about $1.5 billion annually.
The US over the years has sought to blame this issue on India’s lack of comparable social security cover. At the meeting, Sitharaman sought to highlight India’s own distinctive social security components, albeit these may not be comparable to ones existing in the US or some other countries.
Sitharaman, speaking to the Indian media later, said it would be unfair to deny Indian workers the benefits. Pointing out that the US has entered into totalisation pacts with some 25 other nations, she argued that it should be possible to extend the facility to India as well.
A joint statement issued after the TPF meeting on Friday said the discussions focused on a range of trade and investment issues, particualry agriculture, trade in goods and services, investment in manufacturing and intellectual property.
On agriculture, both sides noted forward movement in discussing plant and animal health issues and resolution of labelling and packaging requirements. They agreed to work on enhanced market access for identified agricultural products, including Indian rice, mangoes, grapes, pomegranates, honey, marine products, etc.
Noting India’s concerns on the new Food Safety and Modernization Act implemented by the USFDA that mandates new compliance standards for food imports into the United States, both sides agreed to continue discussions on this.
In the course of discussions on trade in services, the Indian side also pointed to spike in rejection rates of l-1 visas, affecting Indian workers.
While dealing with trade in goods, India brought up issues affecting market access for pharmaceutical products and Indian Traditional Medicines. It also raised concerns over the listing of Indian products by the US Department of labour and its impact on Indian handicraft industry and exports from small and medium enterprises.
On investment, the US appreciated India’s liberalization of FDI caps in the insurance, defence and railways sectors. The US welcomed Indian efforts to improve the ease of doing business through simplification of procedures, ordinance to establish commercial courts, single window clearance and other reforms, an Indian release said.