US wants level-playing field for its companies in India

US sought an atmosphere of genuine competition for its companies doing business in India.

The US sought a level- playing field and an atmosphere of genuine competition for its companies doing business in India,saying current foreign investment rules are “opaque” and customs tariffs complex.

“These (FDI) rules will halt rather than stimulate foreign investment. All that the US seeks is a level-playing field for its companies and a genuine competition”,US Commerce Secretary Gary Locke said addressing a meeting of the Indo-US Business Summit.

The Summit was organised ahead of US President Barack Obama’s address to the CEOs of the two nations.

Obama arrived in Mumbai on a three-day visit during which he is scheduled to address Parliament on Monday.

Locke said that it was critical that the India should not go in for policies that could slowdown this level-playing field.

On trade barriers,he said,India’s import tariffs were complex and various non-tariff barriers have grown.

Moreover,he added,India’s rules which govern FDI were “opaque”.

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India receives about 8 per cent of total foreign investment from the US. FDI in 2009-10 was USD 25.8 billion,while Indo-US trade in 2009-10 stood at USD 36.5 billion.

Speaking on the occasion,Commerce and Industry Minister Anand Sharma underlined the need for intense engagement between the two countries to meet the challenges facing the global economy.

Referring to the US President’s visit,Sharma said,”Obama has described the engagement (between India and US) as a new partnership of the 21st century.”

The business summit was attended by CEOs of major companies of both the countries.