The US has urged India to open up the economy and ease caps on foreign direct investment. Secretary of state Hillary Clinton put forward the request in her opening statement at the India-US strategic dialogue.
“We urge India to ease caps on investment markets,” she said. The US has been pushing India to ease FDI caps in sectors like retail. While the US wishlist clearly includes easing FDI caps, India has asked the US to liberalise export controls and increase cooperation in the high technology sector. “Another key area of cooperation is high technology. I am glad we are working together to liberalise export control,” said Mr Krishna.
Expanding high technology trade between the two countries remains an important issue for India. High tech trade, export controls and FDI caps are all on the agenda for discussions between Mr Krishna and Ms Clinton. Ms Clinton further noted that last year the two countries had logged $66 billion in trade. Calling India economic development remarkable, Ms Clinton said that there were doubts in America over greater economic reforms in India.
She said: “Doubts in America that India has not fully embraced its role in regional or global affairs or will not make the economic reforms needed to foster additional progress would be addressed through the strategic dialogue.” On the dialogue itself, Ms Clinton said: “For two decades India and US worked intensively… this dialogue is an effort to build on history and deepen relations.”