Kerry to visit India this week for economic summit
January 7, 2015, 5:42 am

New Delhi is scrambling to respond to concerns of US companies over India’s civil nuclear liability law [Archives]

The top American envoy will land in Ahmedabad, capital city of the western Indian state of Gujarat, for a biennial summit aiming to attract foreign investment for the state, spokeswoman Jennifer Psaki told reporters.

Gujarat is the home state of Indian Prime Minister Narendra Modi, who will inaugurate the summit.

Psaki said Kerry and top American business leaders will highlight the “critical role” US technology plays in economic growth across India and the Indo-Pacific region, as well as in boosting trade and investment between the two countries.

This is the first time the United States will join the so- called “Vibrant Gujarat Global Investors Summit” as a partner country. Although Indo-US trade has grown over the years to around $100 billion, friction persists on areas from drug patents to local content rules for manufacturers.

Modi faces strong challenges, including an uphill task of easing trade spats with America ranging from protectionism to patent rights.

US President Barack Obama is also scheduled to travel to India this month to attend the country’s Republic Day celebration.

The US Chamber of Commerce and 15 other US business associations have in September complained about barriers to free trade put in by the Indian government. The Chamber is the biggest lobbying group for US business.

Restrictive Indian trade policies have delayed American export and investment to India, a USITC report said last month.

“US exports to and investment in India would be significantly higher if not for Indian policy barriers,” the US International Trade Commission (USITC) said in its report.

Modi visited the US in September last year and met with Obama at the White House.

During his visit the US President is expected to try to enlist India’s support for the much-hyped Asia Pivot. Obama had hoped his foreign policy “pivot” toward Asia would shift US government attention away from trouble spots like Afghanistan and Iraq and toward a region brimming with economic opportunities.

Meanwhile, New Delhi is scrambling to respond to concerns of US companies over India’s civil nuclear liability law and specifically the rules relating to the tough Civil Liability for Nuclear Damage Act.

Ahead of Obama’s visit India has offered to set up an insurance pool to indemnify global nuclear suppliers against liability in the case of a nuclear accident.

Under a 2010 nuclear liability law, nuclear equipment suppliers are liable for damages from an accident in India.

A report in the Indian daily Hindu, says Indian and US officials will discuss two proposals made by India to clear the nuclear logjam this week. This includes a revised proposal of an “insurance pool”, which has been rejected during the tenure of the previous government in India and one that entails a “clarification of Section 46” of the law that appears to allow Indian victims to sue operator or supplier for fault-liability.

 TBP and Agencies