Expressing the need to fast track the process of reform measures, US Trade Representative Michael Froman has asserted that the US is ‘cautiously optimistic’ of reforms being undertaken by the new Indian government. Terming latest steps like key project approvals and raising FDI caps in defence and railways as positive signs for economy, Michael Froman stated that tariff has been increased in certain sectors and there is a long way to go on reforms. The new government has hiked the FDI cap in defence to 49 percent and liberalised the FDI policy for the railways.
Michael Froman added that there remains great potential for further liberalisation, structural reforms and the facilitation of business and asserted that India should address these concerns. Pitching for tighter intellectual property protection in India, the US Trade Representative said that the country needed to enforce a world-class IPR regime and deal with issues such as piracy, counterfeiting, trade secrets and compulsory licensing.
Michael Froman will meet with Commerce and Industry Minister Nirmala Sitharaman on November 25 and discuss about US-India Trade Policy Forum (TPF) which is a government-to-government trade dialogue aimed at increasing bilateral investment between the two nations. The bilateral trade between the US and India has increased five-fold to $100 billion since 2001.