The Hindu : Business : Call to import U.S. high tech

Online edition of India's National Newspaper
Wednesday, Jul 13, 2005

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Business

Call to import U.S. high tech

Special Correspondent

Scope for boosting trade with U.S. in defence, biotechnology and nano-technology `Existing framework for obtaining licence based on end use is under-utilised'

STRATEGIC TRADE: Robert O.Blake,US Charge d'Affaires addressing the Indo-US seminar on strategic trade in New Delhi on Tuesday. S. Jaishankar, Joint Secretary, External Affairs Ministry, looks on.

NEW DELHI: Indian trade and industry have not been able to cash in on the advantages secured for them in terms of licensing and other procedures, despite setting up an enabling framework that allows users in this country to source high-technology imports from the U.S., according to S. Jaishankar, Joint Secretary in the Ministry of External Affairs.

Speaking on Tuesday at a two-day US-India High Technology Group Seminar on "Strategic Trade Controls" organised by the Federation of Indian Chambers of Commerce and Industry (FICCI), Dr. Jaishankar pointed out that the Indian side had been able to set up structures to facilitate predictable and timely licensing of imports. Dr. Jaishankar who is also the Principal Negotiator for India in the Next Steps in Strategic Partnership (NSSP) with the U.S., said the licensing process hinges around India's ability to convince the U.S. authorities on what the end uses of high-technology imports were and that there were no diversions.

He said it also depends on effective communication on trade facilitation between the two sides. The database built up by the Indian side was providing information to the US about the bona fides of importers in India to highlight the veracity of end-use declarations, he said.

Mr Robert O'Blake, Charge d'Affaires of the US Embassy, said Indo-US partnership in high-technology trade would get a shot in the arm with the setting up of a CEO Forum later this year. He saw much greater potential on strengthening trade between India and the US especially in defence, biotechnology and nano technology.

The Director, US Office of Non-proliferation and Treaty Compliance, Steven Goldman, said, "doing business with the US on controlled trade items was never easier than now mainly because of serious attempts at streamlining of procedures". He said the endeavour was to bring home to India that trade expansion and security were not conflicting but complementary values.

Kolkata Correspondent writes:

Panel for involving SMEs

The Centre will take a view on the recommendations of the Vijay Kelkar Committee only after receipt of the full report of the committee which was appointed last year to find out why the private sector was not entering the defence production area in a major way.

Union Defence Minister Pranab Mukherjee said that the Committee which has already submitted the first part of its report, is likely to submit the second part, pertaining to modernisation of defence PSUs and ordnance factories, by July-end or August-first week.

Earlier, while addressing Bengal National Chamber of Commerce & Industry members , he said that the first part of the report revolved around major policy issues and initiatives, which are critical for future growth and development of strong defence industrial base.

The committee, has also made certain suggestions for promoting participation of small and medium units. "A decision on these recommendations will soon be taken", he said.

Mr. Mukherjee said that while defence industry sector was opened up for the private sector with FDI being permissible upto 26 per cent (both subject to licensing) since May 2001 "there is not much progress," although a number of private sector majors had obtained letters of intent for manufacturing a gamut of defence items.

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