U.S. Must Exercise Care In Verdicts On India's Trade Policies

Washington: The U.S. must exercise care in rendering "unilateral verdicts" based on sectoral interests against India's trade policies, an eminent Indian-American economist here has said.

Arvind Subramanian, of the Peterson Institute for International Economics testifying before US International Trade Commission (USITC) on Indian trade practices and policies that have impact on American businesses, stressed on the need for adopting a forward-looking perspective.

"As this body deliberates on Indian trade and investment policies and delivers its findings, it should take account of the broader strategic setting. Trade policy does not operate in a vacuum. It is important to ensure that the U.S. exercises care in rendering unilateral verdicts based on sectoral interests which carry the risk of punitive actions," Subramanian said.

"Moreover, it is important to adopt a forward-looking perspective. Elections loom in India and it is increasingly likely that there will be a new government eager to revive the Indian economy based on a more business-friendly approach. Ensuring that a positive start to that effort is not set back by adverse foreign judgements is critical," he said.

At a time when Asian security is in a great flux and the US has serious security interests and concerns in the region, it is important to strengthen ties with India with a view to building a strategic partnership, he argued.

Read More:
Bitcoins May Help Grow World Trade, Says Expert
Hidden Charges You Pay Over and Over Again