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India is the single largest beneficiary of the US

Generalised System of Preferences (GSP) programme, which allows most Indian imports to enter the US duty free.

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Generalised System of Preferences (GSP) programme, which allows most Indian imports to enter the US duty free.

In contrast, US exports to India lack reciprocal access, facing high tariff and non-tariff barriers, and India imports less from the US than from much smaller economies like Singapore (whose economy is less than one-seventh of India's size) and the UAE (less than one-fifth), the letter said.

"These barriers include forced localisation measures; high tariffs, including some contrary to India's WTO commitments; foreign ownership restrictions in a number of sectors, including Business to Consumer (B2C) retail; insufficient protection of intellectual property rights; long and inconsistent government approvals and licenses; and unique and onerous standards and testing procedures," it said.

"These barriers only serve to discourage globally competitive industries in the United States from participating fully in India's economy and create unfair competitive challenges for US companies," the letter said.

Modi has set a goal of breaking into the top 50 countries by the 2018 Doing Business Report, an ambitious goal that could enable Indian and American business leaders alike reach new customers, sell new products, and create more jobs for more workers but that would require a significant acceleration in domestic reforms, the letter said.

Other signatories to the letter are Distilled Spirits Council of the United States (DISCUS), Illinois Manufacturers' Association, INDA, Association of the Nonwoven Fabrics Industry, Motion Picture Association of America (MPAA), National Association of Manufacturers (NAM), National Foreign Trade Council (NFTC), New Jersey Business & Industry Association, and Pennsylvania Manufacturers Association.

It has also been signed by Pharmaceutical Research and Manufacturers of America (PhRMA), Recording Industry Association of America (RIAA), Society of Chemical Manufacturers & Affiliates (SOCMA), US Chamber of Commerce (USCC), US Council for International Business (USCIB).

The letter said while there have been several steps in the right direction over the past two and a half years since Prime Minister Narendra Modi's election, including foreign investment openings in a few sectors, fossil fuel and energy efficiency policy initiatives, efforts to address infrastructure project permitting and licensing challenges, and passage of legislation related to bankruptcy and tax reforms, concrete and lasting policy changes to address a number of other longstanding issues comprehensively remain elusive.

 

(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)

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