US Manufacturers to Enter India Only After Policy Reforms
Published By : 17 Jun 2015 | Published By : QYRESEARCH
The U.S. manufacturing industry seems to be interested to enter into the Indian markets. However, not before India introduces policy reforms to create a favourable field for all. According to Jay Timmons, the president and CEO of the US National Association of Manufacturers (NAM), the Indian government need to reform its existing policies to encourage and protect innovation and collaboration. Speaking at NAM/CQ Roll Call in Washington, he subtly hinted that till the time the reforms are not introduced, the U.S. manufacturers will not make a move to enter into India.
Timmons was quoted saying that last year, the manufacturers were optimist about investing in India under Narendra Modi’s government which had promised to create positive environment for foreign investment. However, even after a year, there has been no concrete policy reform. He pointed out that the Modi government had mentioned to strengthen the intellectual rights in India to protect the innovators at home and abroad through its draft National IPR Policy. But so far, no significant policy has been implemented. Similarly, there were talks about opening up India’s market to increased foreign investment. However, the talk was cut short when India deviated from the previously agreed WTO Trade Facilitation Agreement. This move by the country jeopardised a deal that included 160 countries and had the potential to add about US$1 trillion to the global economy. Though eventually India agreed with WTO on a deal, it is yet to honour the agreement.
Timmons noted that the policies in India are restricting the manufacturers from the U.S. and other countries to sell their products in India. He further pointed out that though India is among the top ten largest economies in the world, it is nowhere in the top 15 destinations for the U.S. exports. The U.S. International Trade Commission has mentioned that once India lifts its discriminatory barriers, the U.S. exports to India would increase substantially.