US cautions on Atma Nirbhar, points to ‘systemic’ issues in trade talks

US deputy Under-Secretary for international trade Joseph Semsar urged India to focus on creating an environment that will enhance its position in the global supply chain.

The United States on Monday cautioned India against “isolationist” implications of the Atma Nirbhar programme and pointed to persisting “systemic structural” issues standing in way of a trade deal, contrary to the optimism projected earlier by some Indian officials.

India and the United States have been engaged in trade talks for a long time but an agreement has remained elusive. (REUTERS File Photo)

The programme has put a “question mark around this notion of self-reliance,” Joseph C Semsar, deputy under-secretary for international trade, said referring to the Atma Nirbhar plan.

“Our thought is that isolationist policies can also cause a decrease in exchange between businesses and economies, less technology and best practice sharing fewer joint research and development projects and stifled innovation,” Semsar said.

He added: “We urge the government of India to focus on creating an environment that will enhance India’s position in the global supply chain.”

Semsar, who was filling in for Commerce Secretary Wilbur Ross, addressed the issue in a virtual conversation at the ongoing annual summit of the US-India Strategic Partnership Forum (USISPF), a trade body of companies from both countries.

The senior commerce department official also pointed to persisting issues in trade talks. “We are making headway, but some systemic structural issues continue to exist,” he said, adding that pressure must be kept up on both sides “because ultimately, we can’t get to a deal or a mini deal, unless we’re at the table having conversations and making progress on the issues that our respective governments care about.”

Indian officials, on the other hand, have said the deal is ready for signing, at least from the Indian side and it is for the Americans to decide when, before the November 3 elections, or after.

To present itself as a credible alternative destination for companies shifting their supply chains out of China, deputy under secretary Semsar said that India needed to do much more on the ease of doing business even though it has made “incredible” progress overall.

“India still runs 136 for starting a business, 154 for registering a property and 163 for enforcing contracts,” Semsar said and added that “Internationally, ease in these three areas is central to key, and attracting foreign businesses.”