Dual-use ban blocking $270-billion in US sales, India tells US

24 March 2009

India has sought the lifting of a US ban on sale of dual use items to this country, saying it blocked over $270 billion in business for American nuclear power reactors and defence sales.

A lifting of the "unnecessary" restrictions would help realise $150 billion in nuclear commerce and another $120 billion in defence sales for US companies, prime minister's special envoy on nuclear issues Shyam Saran told the the Barack Obama Administration.

''With the opening up of nuclear commerce with India, there is a need now to review and remove these unnecessary restrictions on international trade with dual use item and technology,'' he pointed out.

The US uses the so-called entity list  to prohibit the sale of US technology to several Indian technology and engineering firms, the PM's special envoy on climate change said during a meeting at the prestigious Brookings Institute in Washington.

''As India's economy matures and its industry moves into higher-end manufacturing, the demand for high technology goods and services is destined for a major boost,'' he pointed out in a keynote speech on 'Indo-US civil nuclear agreement: Expectations and Consequences'.

''The US, of course, remains the preferred source of such goods and services,' he said adding that he hoped, ''the so-called Entity List, which still prohibits sale of US technology and services to a number of Indian high-tech companies, will be scrapped sooner than later.''