Even as the US continues to build a web of tariffs on Indian exports using various domestic laws, American Ambassador to India Sergio Gor said Tuesday that both countries must address friction points as true partners to unleash the full power of the economic relationship.
Addressing the National Convention of the India American Chamber of Commerce in Mumbai, he said: “We need predictable taxation and regulatory frameworks that allow businesses to thrive.”
Many top US companies including Google, Microsoft, Meta, Amazon and IBM have faced multiple tax issues in India related to transfer pricing, royalty payments and services fee. Some of them have dragged on in courts and tribunals for a long time. Many more are facing similar issues.
The US has frequently flagged restrictions faced by its technology, e-commerce companies and those in the financial sector while operating in India. Some of the issues raised in an annual publication of the US Trade Representative (USTR) relate to data localisation norms, e-commerce restrictions, Quality Control Orders, preference to local suppliers in government procurement and patent laws.
“We need candid trust-based engagement on export controls and technology flows, and we need rock-solid intellectual property protections giving every innovator confidence to invest, create and scale without fear,” Gor said.
He said no two nations on earth are better positioned to drive the next phase of economic and global growth than the US and India. “President (Donald) Trump trusts India and he has invested heavily into this relationship from day one.”
Just weeks into his second term, he and Prime Minister Narendra Modi launched the TRUST Initiative transforming the relationship utilising strategic technologies to accelerate cooperation in AI, quantum computing, semiconductors, defence and critical minerals,” he added.
The Ambassador invited Indian businesses to invest in the US, listing some of the companies that are already in the process of doing so. He pointed out that Indian companies have already committed $ 20 billion investment in the US and said no market offers the scale, stability, innovation ecosystem that America does.
“The US and India are working together at record levels and our shared ambition of reaching $ 500 billion in bilateral trade reflects the sheer scale of the opportunity,” Gor said.