Seeking to further strengthen bilateral economic relations, Prime Minister Narendra Modi today said India and the US will “restart” discussions on the Social Security Agreement and resume talks on Bilateral Investment Treaty.
Addressing a joint press meet with US President Barack Obama, he said economic growth in the two countries is becoming stronger.
“President Obama and I agree that a strong and growing economic relationship is vital for the success of our strategic partnership. Economic growth in our two countries is becoming stronger. Our business climate is improving. This gives me great optimism about our economic ties,” he said.
In addition, Modi said the two countries have established a number of effective bilateral mechanisms to identify opportunities and also help their businesses trade and invest more.
“We will also resume our dialogue on Bilateral Investment Treaty. We will also restart discussions on a Social Security Agreement that is so important for the hundreds of thousands of Indian professionals working in the United States,” Modi said.
India wants early conclusion of the totalisation agreement or Social Security Agreement with the US.
The US has entered into agreements, called ‘Totalization Agreements’, with several nations for the purpose of avoiding double taxation of income with respect to social security taxes.
Under these, professionals of both the countries would be exempted from social security taxes when they go to work for a short period in the other country.
The two countries are also engaged in negotiations for a Bilateral Investment Treaty to protect investments between the two nations.
The bilateral trade between India and the US is estimated at about USD 100 billion. FDI flows from the US to India have totalled USD 13.28 billion from April 2000 to November 2014.