India and the US should cooperate and settle issues related to patents, commercial disputes and visa and tax problems to promote bilateral trade.

Speaking to media persons, NV Srinivasan, National President, Indo-American Chamber of Commerce, said many companies in the US are looking at India for investments due to availability of talent pool and affordable cost. Energy, logistics, defence equipment manufacturing, infrastructure and aerospace are major areas of interest among the US investors.

According to a report released by DIPP, the US is the fifth largest source of foreign direct investment in India. The cumulative FDI inflows from the US between 2000 and 2015 amounted to $19.38 billion, which is 6 per cent of the total FDI inflows into India.

“Aerospace particularly is a huge area of interest and talks are ongoing about having a joint venture in the area of space technology and design,” Srinivasan said. To take projects further ahead, issues related to IPR, commercial disputes and taxation need to be addressed first, he added. While the US companies are interested in setting up facilities here, they are reluctant to transfer knowledge related to latest technologies.

Srinivasan said having an efficient dispute settlement mechanism is another important factor to foster bilateral trade relations between the two countries. Lack of such a system has resulted in many international companies distancing themselves from resolving disputes in India and this has affected many bilateral business dealings.

Indians face difficulties related to dual social security payments and visa; and these should be solved given the proliferation of Indian companies and start-ups in the US. “Introduction of new legislative changes, coupled with robust intellectual property and taxation laws will go a long way in improving trust,” Srinivasan said.

Related Topics
comment COMMENT NOW