India shares draft copy of bilateral investment treaty with US

Source: PTI

With the US keen on accelerating the BIT negotiations process, India has shared with it the draft copy of the proposed bilateral investment treaty that awaits Cabinet approval.

During the US-India Trade Policy Forum (TPF) meeting that concluded on Thursday, Indian officials told their American counterparts that they would be in a better position to talk on it once the draft of the model text for the bilateral investment treaty (BIT) is approved by the Cabinet.

“In fact, they wanted us to have a detailed talk on it. The investment treaty is awaiting Cabinet clearance. Draft copies (of BIT) were exchanged,” Commerce Minister Nirmala Sitharaman told Indian reporters at the conclusion of ninth round of India-US TPF, which she co-chaired with the US Trade Representative Mike Froman.

Sitharaman told US officials that India would be in a better position to hold talks on it once it is cleared by the Cabinet, which is expected soon.

Responding to a question, Sitharaman said India is not taking away jobs from the US. In fact, Indian investment in the US is giving jobs to thousands of Americans.

The US noted India's concerns over the limitations on mobility of skilled professionals and issues concerning H1B and L1 visas, including the spike in rejection rates of L-1 visas.

India also underlined its interest in the early conclusion of a Totalisation Agreement and the need to address the anomaly in US law which requires Indian professionals to pay social security without receiving the related benefits.

On totalisation agreement, in her meetings, Sitharaman told the American officials that social security network may not be comparable in countries.

“They say as long as we do not have a comparable social security cover in India, they think it may not be fair for them to extend the benefit to us. In the absence of that it is not possible for them to extend (social security cover),” she said.

Next week, Sitharaman is scheduled to attend a meeting of Fortune 500 companies in San Francisco.

“This is essentially to talk about investment climate in India. Considering that they are Fortune 500 companies, we certainly want to engage them and explain about things happening in India,” she said.

According to a joint statement issued at the conclusion of India-US TPF, Sitharaman and Froman highlighted the important role of the services sector in the two countries and the significant potential for increasing bilateral services trade and investment.

October 30, 2015 | 4:37pm IST.