India,US to expand high-technology trade

New Delhi: India and the US on Friday agreed to "a series of time-bound actions" that will bring the level of their high technology trade in tune with their growing strategic partnership. The agreement was reached at a meeting between India's foreign secretary Shivshankar Menon and the US undersecretary of commerce for industry and security, Mario Mancuso at the two-day conclave of the India-US High Technology Cooperation Group (HTCG).

The agreement has also come amidst a sudden spat between the two nations over an apparent French initiative to advance India's cause amongst nuclear supplier group nations.

The two officials co-chaired the sixth two-day meeting of the HTCG that concluded here Friday. The meeting discussed ways of expanding high technology trade between them, a portion of which is restricted to India due to sanctions still in place because of the nuclear tests conducted in 1974 and 1998.

"The two sides looked forward to a series of time-bound actions in the above areas to raise high technology commerce to the next level of bilateral cooperation - in keeping with the transformed nature of the strategic partnership between India and the US," said a statement from the external affairs ministry.

"Highlights of the action plan include a timetable for reviewing export controls in respect of India - building on innovative efforts already underway for simplifying export controls," the statement said at the end of the talks.

The action plan followed recommendations made by industry leaders, which held their meeting Thursday, for enhancing US high-tech transfers to India.

"India recognised and welcomed the US administration's announcement of their dual use export control reform initiative," the statement said.

The two sides discussed the Validated End-User (VEU) programme, a US initiative to simplify export licensing requirements for Indian companies, and agreed that "further discussions were required" as US export control polices "should keep pace with the transformed relationship between India and the US".

With the US stressing on defence ties becoming a key pillar of a transformed relationship, it was agreed at the meeting that an ambitious plan be drawn up that would provide an impetus to high technology transfers and trade which would address all issues related to licensing and the implementation of India's defence offsets policy.

The resolution of these issues would spur collaborations at all levels including small and medium enterprises.

Meanwhile the US is constantly stressing that relationships are not bound to an agreement on the agreement on the civil Indo-US nuclear deal. "The civil nuclear deal is different. I would disaggregate 0.2 percent of high technology trade that is restricted to India from the nuclear deal," Marcuso told reporters after industry-to-industry meeting Thursday.

The nuclear deal has also been perceived to be a precursor for the dismantling of technology denial regimes that have restricted the country's development options.

Formed in 2003, the HTCG has identified four broad areas of priority for promoting bilateral commerce in advanced technology items between India and the USA: defence and strategic trade, biotechnology, information technology and nanotechnology.

With regard to nanotechnology, the two sides agreed to focus on commercial application of cost-effective solutions in the areas of health, energy, potable water and sustainable development.

The two sides agreed to support advanced technology transfers that would stimulate capacity building in life sciences. "They also agreed to engage in harmonization of regulatory systems in medical devices, pharmaceuticals and biotechnology with ultimate objective of improving market access," the statement said.

The two countries have also decided to expand collaboration in trade on advanced electronics and software, high performance computers, encryption and next generation technologies.