US to remove Indian entities from banned list, support India at NSG
With President Obama on his tour to India, some major demands on India’s wish-list are reported to have been delivered by the US.
New Delhi: As President Barack Obama completed his first day on the three day tour to India, some major demands on India’s wish-list were reported to have been delivered by the American side including “status to India as a close ally as far as dual use technology goes along with removal of Indian organisation like the ISRO and DRDO form the Entities List.”
Sources in the White House and in the delegation travelling with Obama have revealed that the tough export control rules which are harmful to Indian business and defence sectors are going to be liberalised.
The US will update the dual-use technology rules. These rules have prevented the transfer of sophisticated technology to Indian companies and the defence sector.
President Obama announced in Mumbai that his country was reforming the
export control system.
"My Commerce Secretary Garry Locke will be leading
another trade mission to India in the next few months. And we
are reforming our export control system.
"So, even as we strengthen our national security, we make
sure that unnecessary barriers do not stand in the way of
hi-tech trade between our two countries," he said.
The President said the US will work with India to
fundamentally reform its control on exports, which will allow
greater cooperation in a range of hi-tech areas.
Added to that, the US will support India’s membership in the four multilateral export control
regimes which will make it easier for India to get dual-use
technology from member countries though it is subject to rules
of individual nations.
"These are the NSG-- what is called Missile Technology
Control Regime (MTCR)-- the Missile Technology Control Regime,
the Australian Group and the Wassanaar Arrangement," Mike
Froman, Deputy National Security Advisor for International
Economic Affairs, said in a statement.
It will also provide India with a say in framing
export control rules.
The above have been high on the list of India’s expectations.
These are groups of multilateral, dual use export
control clubs. The Australia Group deals with chemical and
biological weapons, and Wassenaar deals with conventional
weapons and dual use technology in it.
"Now, this membership will come in a phased manner.
And we will consult with our regime members to encourage the
evolution of a membership criteria of these regimes consistent
with maintaining their core principles.
"So as the membership criteria of these four regimes
evolves, we intend to support India`s full membership in them.
And at the same time, India will take steps to fully adopt the
regime`s export control requirements to reflect its
prospective membership," Forman goes on to say recognising,
"the nature of the strategic relationship we now have with
Three Indian entities -- Defence Research and
Development Organisation (DRDO), Indian Space Research (ISR0)
and the Hyderabad-headquartered Bharat Dynamics Limited (BDL)
-- will be taken off embargoed list.
"The second element of the export control reform
package being announced is that we will remove India`s defense
and space-related entities from the US entity list. The
entity list at one point had, I believe, 220 Indian entities
on it. And there are only four left.
And today we will be
announcing a removal of three of them," the US statement said.
"And now removing these entities from the entity list
will aloow for greater trade and cooperation in civilian space
and defence, and enable our governments to focus on other
outstanding barriers that hinder expanded bilateral high-tech
trade. And this a very significant step forward," the
During the roundtable, Obama was accompanied by US
Commerce Secretary Gary Locke and other top officials as also
corporate leaders who are part of his entourage.
The deliberations covered areas like electric cars, clean
transport, solar power, drinking water and recent discoveries
in the pharmaceutical sector.
The discussions, which focused on growing trade and
investment, were attended by Anand Mahindra, vice chairman and
managing director of Mahindra and Mahindra Group, Ajay Piramal
of leading pharma group Pirmal and other business leaders.