The US has agreed to continue discussions with India on concerns related to professional visas and a long-pending social security agreement, but fell short of giving any commitment in either area.

“They (Indian and US reps) decided to continue their engagement on visa issues, and the United States took note of India’s interest in ensuring easier access for Indian professionals in the United States,” said a joint statement following the trade policy forum meeting. The meeting was chaired by Commerce and Industry Minister Nirmala Sitharaman and US Trade Representative Michael Froman.

Addressing a press conference following the meeting, Froman said that the US had noted concerns raised by India about the elements of the draft (Immigration) law, which is seen as being discriminatory to certain business models (such as Indian IT firms).

“We took note of their concerns and drew their attention to the recent executive order issued by the President that lays out both the process of clarifying certain issues related to L1 visas as well as creating certain flexibilities around H1B visas,” he said.

The US President had also noted that ultimately, visa reforms will require the US Congress to adopt the legislation, he added.

India demanded that the provisions of a Border Security Bill that imposes higher professional visa fees on the IT industry are not extended beyond 2015.

It also asked the US to drop controversial provisions in the Immigration Bill being considered by the US Congress, which could lead to heavy penalisation of Indian IT companies that recruit a large number of Indians in their US operations.

On India’s demand for a totalisation agreement, which would exempt short-term foreign workers in both countries from contributing to social security, the US said that it would review any information provided by India about developments in its social security regime and continue its engagement on the matter.

IPR issue

On the issue of intellectual property, Froman said that the two sides did not discuss the review process of India’s IPR regime being carried out by the US. He, however, said that India’s concerns on affordable healthcare for its citizens went beyond patents and compulsory licences to issues such as tariffs, distribution systems, logistics to reach medicines to the poor, and health insurance.

He said that the US was prepared to work together with India in aligning India’s aspirations to attract world-class investments in manufacturing and services and the appropriate IPR that goes with it.

‘Palpable change in mood’

Commenting on Prime Minister Narendra Modi’s Government, Froman said that there was a palpable change in mood among officials, industry and the international business community, but it would translate into investments only if concrete actions are taken on the ground.

“We are keenly watching what happens with the draft Insurance Bill that seeks to increase the FDI limit in the insurance sector,” he said.

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