India Should Not Embrace Protectionist Policies: U.S.

Monday, 14 April 2014, 15:49 IST   |    6 Comments
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"In particular, we would note the growing use of policies that can be described as localisation barriers to trade to meet the Government of  India's objective of encouraging domestic manufacturing of telecommunications equipment, including in provisions of the 2012 National Telecom Policy and the 2011 National Manufacturing Policy," it said. In its submission, the TIA said, it "encourages the Government of India to reject preference policies, quotas, and other trade barriers that run counter to the market opening reforms that India has implemented in the past, which provided the catalyst for the unprecedented economic growth the country has experienced in recent years".

Furthermore, TIA said it encourages India to continue to adopt global standards rather than mandatory national standards, which will inhibit India's long-term growth. TIA said it urges India to continue to build on the reforms in the telecommunications sector that have been so successful and to continue to focus on a policy approach to improve the overall commercial environment - regardless of the sector.

These broad policy approaches could include market-oriented incentives to further develop India's infrastructure and encourage investment in India's ICT (Information and Communication Technology) manufacturing ecosystem, it said. "Other areas could include simplification and transparency in India's customs tariffs, adopting global norms in government procurement that are best exemplified by the WTO Government Procurement Agreement, and adopting a simplified national tax system, it said.

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Source: PTI