US Seeks Tariff Reductions For Greater Market Access in India.

New Delhi,  (PTI) The US today sought lower tariffs and greater market access in India, and said that the country ranked low on World Bank''s ranking of ''ease of doing business'' because it has limits on FDI in key sectors and high import duties on a number of products.

Seeking easy market access in India for civil aviation aircraft, X-Ray films, apples and pistachio, the visiting US Commerce Secretary Gary Locke said here that Indian tariffs on these items range from 19 per cent to 50 per cent.

India''s non-tariff barriers include limits on foreign direct investment (FDI) in key areas, mandatory technology transfer requirement for telecom equipment and inadequate protection of intellectual property rights (IPRs), Locke said at a CII function here today.

"Even though India has made tremendous strides to open its economy, there is much work left to be done...there are other non-tariff barriers that limit trade and investment including limits on FDI in key sectors, inadequate protection of IPRs," he said.

Locke, who is leading a 24-member business delegation to India, said the country''s market barriers would protect the domestic firms only in short-run.

"...over time, these barriers will limit foreign direct investment (FDI)," he said.

US wants India to open sectors like multi-brand retail and increase FDI cap of 26 per cent in defence production.

The US Secretary said that because of such reasons India still ranked at 134 out of 184 countries on the World Bank''s ease of Doing Business Report.

Seeking a level playing field for the US companies in India, he said: "We are merely asking for the same treatment foreign companies and investors receive in America".

The Indo-US trade was USD 50 billion in 2010.

Earlier in the day, Commerce and Industry Minister Anand Sharma and Locke held bilateral talks, where India''s concern on visa fee hike by the US was also discussed.

Source : news.in.msn.com