India’s import regime for laptops and PCs, the long-pending bilateral totalisation agreement, non-tariff barriers in agriculture and manufacturing, business visa issuance and semi-conductor fabrication are likely to come up in Commerce & Industry Minister Piyush Goyal’s meetings with US Trade Representative Katherine Tai and US Commerce Secretary Gina Raimondo in Washington DC, this week, sources have said.

“The USTR has been pursuing the issue of transparent and liberal policy for laptop and PC imports since the import authorisation regime was put in place last year. Now that the government has announced that companies will have to apply for fresh approvals for imports from January 1, 2025, with new guidelines, companies are worried. This issue is likely to be taken up by the US side,” a source tracking the matter told businessline.

The Directorate General of Foreign Trade recently extended by three months the import authorisation regime for seven IT hardware products, including laptops, PCs and tablets. It is now valid till December 31, 2024.

The import authorisation regime, which was made liberal following concerns raised by companies such as Dell, Apple and HP and also the USTR, allows the restricted items to be imported without a cap, after importers apply for automatic authorisations.

But there is no clarity on what the government plans to do from January 1, and whether it would bring in tighter rules for imports in order to boost local production and its Production Linked Incentive scheme that promotes domestic manufacturing.

Check on Chinese imports

At the WTO, India had explained that the new import regime for the seven IT hardware products was to ensure supply chain resilience and address national security concerns. MeitY officials had earlier said that it was important to keep a check on the items being imported from China.

Imports of the seven products from China in 2023-24, approximately valued at $5 billion, were almost at the same level as the previous year and accounted for 58-60 per cent of the total imports.

Goyal, on the other hand, is likely to take up the issue of long-pending bilateral social security, or totalisation agreement, which could offer exemption to short-term workers from contributing to social security to avoid double payment. This could lead to substantial savings for Indian companies in the US, especially in the ICT sector.

Other issues

New Delhi also wants the US to ease non-tariff barriers, especially related to standards and testing, for agriculture products. Speeding up of issuance of business visas for Indians is also an important issue for the Indian government.

Proposed collaboration between India and the US for semiconductor fabrication in India is also likely to be part of the discussion.

“The Minister’s visit will add further impetus to the strong and growing trade and investment ties between India and the US. It will encourage business-to-business engagement, and promote strategic partnerships across sectors of priority to both sides, including critical minerals, building supply chain resilience, facilitating climate and clean technology cooperation, inclusive digital growth, standards and conformance cooperation, travel & tourism etc,” per a government statement issued earlier.

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