US to remove Indian entities from banned list, support India at NSG
Last Updated: Saturday, November 06, 2010, 22:29
Zeenews Bureau

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 India."

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 statement said.

PTI inputs

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.

-Agencies inputs

First Published: Saturday, November 06, 2010, 22:29

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