Indian govt should not take up protectionist policies: US telecom

Written by Press Trust of India | Washington | Updated: Apr 13 2014, 08:27am hrs
In order to attract investment, the Indian government should continue a policy approach that is pro-competition and pro-growth and not embrace policies that rely on protectionism, the American telecom industry said on Friday.

The telecommunications sector is an important contributor to Indias continued economic growth and job creation through both domestic and export-oriented economic activities, the Telecommunications Industry Association (TIA) said in its comments submitted to the US International Trade Commission (ITC).

TIA is the leading association representing the manufacturers and suppliers of high-tech communications networks.

The US ITC is conducting an investigation regarding industrial policies of the Government of India on whether they discriminate against US imports and investment in order to support Indian domestic industries, and the effect that those barriers have on the US economy and US jobs.

It must be noted that in order for India to enhance its competitiveness in the global ICT sector and to further encourage investment, the Government of India should continue a policy approach that is pro-competition and pro-growth, and not embrace policies that rely on protectionism, TIA said.

In its submission, TIA said it continues to be concerned that there is an underlying trend in India to implement policies that would reverse the pro-growth and pro-competition policy trajectory that has benefited India in favour of policies that would seek to make Indias ICT market less competitive, as well as establish barriers to trade and investment.

In particular, we would note the growing use of policies that can be described as localisation barriers to trade to meet the Government of Indias 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.