Apr 18, 2014, 4:39 pm (BST)
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US exporters face trade barriers from India
Washington, Apr 4 (BSS/PTI) Despite India's ongoing economic reform efforts, US exporters continue to encounter tariff and non-tariff barriers that impede imports of Americans products to India, an official report has said.

In its report 2012 National Trade Estimate Report on Foreign Trade Barriers, the US Trade Representatives (USTR) Monday said the US has actively sought bilateral and multilateral opportunities to open India's market.

"The structure of India's customs tariff and fees system is
complex and characterised by a lack of transparency in
determining net effective rates of customs tariff, excise duty
and other duties and charges on imports into India," said the
India section of the report.

US goods trade deficit with India was USD 14.5 billion in
2011, up USD 4.3 billion from 2010, it said.

US goods exports in 2011 were USD 21.6 billion, up 12.4 per
cent from the previous year. Corresponding US imports from India
were USD 36.2 billion, up 22.5 per cent.

Noting that India is currently the 17th largest export
market for US goods, the report said US exports of private
commercial services (excluding military and government) to India
were USD 10.3 billion in 2010 (latest data available), and US
imports were USD 13.7 billion.

Sales of services in India by majority US-owned affiliates
were USD 13.1 billion in 2009 (latest data available), while
sales of services in the US by majority India-owned firms were
USD 7.2 billion.

The stock of US foreign direct investment (FDI) in India was
USD 27.1 billion in 2010, up from USD 20.9 billion in 2009, it
said adding, that US FDI in India is led by the information,
professional, scientific, and technical services, and
manufacturing sectors.

In its report, USTR said India' procurement practices and
procedures are often not transparent.

Foreign firms also rarely win Indian government contracts
due to the preference afforded to Indian state-owned enterprises
and the prevalence of such enterprises. USTR said India's tax
exemption for profits from export earnings has been completely
phased out, but tax holidays continue for certain export-oriented
enterprises and exporters in Special Economic Zones.

"In addition to these programmes, India continues to
maintain several other export subsidy programmes, including duty
drawback programmes that appear to allow for drawback in excess
of duties levied on imported inputs," it said, adding that India
also provides pre-shipment and post-shipment financing to
exporters at a preferential rate.

India's textile industry enjoys subsidies through various
modernisation schemes, such as the Technology Upgradation Fund
Scheme and the Scheme for Integrated Textile Parks, USTR said.

India needs to improve its IPR regime by providing stronger
protection for copyrights, trademarks and patents, it said,
adding that the country also needs to provide effective
protection against unfair commercial use of undisclosed test and
other data generated to obtain marketing approval for
pharmaceutical and agrochemical products.

The US, the report said, has raised a number of concerns
with the draft copyright legislation, including inadequate
protection against unlawful circumvention of technological
protection measures connected to Indian and foreign rights
holders' copyrighted works.

"Large-scale copyright piracy, especially in the software,
optical media, and publishing industries, continues to be a major

"In addition, India's criminal IPR enforcement regime
remains weak," it said.

India, the report said, continues to prohibit or severely
restrict foreign investment in certain sectors, such as
agriculture, multi-brand retail trade, railways, and real estate.
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