Processing .....please wait.. 
The article has been forwarded.... 
US urges India to open retail sector to foreign investment
Friday, 12 March 2004, 20:30 IST
NEW DELHI: The US Friday urged India to open up its retail sector for foreign direct investment (FDI) to allow consumers benefit from wider choice at lower prices, including food and beverages from overseas.
"India's economic growth is partly being hampered by the continuing ban on FDI in retail sector," US Ambassador David C. Mulford said.
He was inaugurating the American pavilion at the five-day annual food expo, Aahar 2004, being held here.
"Removal of this restriction would accelerate the growth of this up and coming sector, bringing with it an efficient supply chain and a stronger domestic food processing sector," said Mulford, who arrived in India last month.
A dozen major growers' associations and exporters from the US are participating in the expo to showcase and promote a range of agriculture produce ranging from apples, pears and prunes to dry fruits like almond and pistachio.
Mulford said the US has been engaging India in the WTO framework to further open international markets and to mitigate trade distortions, particularly in agriculture.
On market access, Mulford said that while the US is one of the world's most open economies, India continued to be one of the most closed.
"In agriculture, India enjoyed an $857 million trade surplus with the US in 2003," he said, indicating the high Indian exports to the US.
He added: "Over the past six years, US agricultural exports to India have almost doubled to $309 million in 2003. However, given India's population, growing middle class, and robust economic growth, this figure is too small."
While stating that the US is willing to eliminate export subsidies and reduce domestic support, Mulford said, "... we cannot do it unilaterally. Others who have much higher levels of agricultural subsidies must also do their part."
Although India-US relations have improved considerably, Mulford said, trade and investment were areas that have under-performed and the "US government and industry would like to see further progress made on these two fronts".
The US exhibitors at Aahar were keen to be more involved in the Indian market, said the ambassador, adding that freer trade and increased private investment would "improve the lives of all India's citizens".
Source: IANS
Source: IANS