Mr Francisco Sanchez, Under Secretary of Commerce for International Trade, US Department of Commerce, today reiterated his Government's view that imposition of local content requirement is not the best way of fostering development of domestic industry.

Mr Sanchez is here leading a US business delegation to ‘explore opportunities in the Ports and Maritime Technology sector'. The official had come to Hyderabad in November last year, where he had said the same thing.

He had then said, in the context of localisation requirement in the solar equipment industry imposed by the Government of India, that free imports help the user industry grow, as a consequence of which overseas manufacturers see economic sense in setting up manufacturing facilities in India.

Today, he said that he would “encourage the Government of India to think carefully” before bringing in local manufacture conditions.

Addressing the media here today, on the sidelines of a business meeting organised by the Indo-American Chamber of Commerce, Mr Sanchez said that the US saw a big potential for American companies in the ports and maritime technology area in India, because India would spend $90 billion between now and 2020 in developing the sector, to raise Indian ports' handling capacity from 1 billion tonnes to 3.2 billion tonnes.

Answering a question about making business visas easier, Mr Sanchez said that he was aware of the problem but it fell in the jurisdiction of “my brethren in the State Department.” He said that the US Commerce Department was in touch with the State Department on the issue.

>mramesh@thehindu.co.in

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