Blamed for setting barriers for US IT companies; India in a tight spot
Added On:3/15/2013 11:16:00 AM

US IT sector representatives have said in a statement that India is now locating up a steeplechase for the American IT and high-tech firms by putting in place random new regulations and policies.

Dean Garfield, President and CEO of the Information Technology Industry Council said that besides the opportunities that existed and the impact, the positive impact that open markets have had on the ground in India, the government of India seemed to be doing a shutter-step on open markets and setting up a steeplechase of barriers to the success of foreign companies, especially American entities.

Garfield said that there was a set of examples from random new regulations to new testing and certification regimes to have access to the market at all. 

The Information technology agreement which was signed in 1996, has India as one of its partners as well as participants but the world had changed drastically since 1996, he added.

According to him, the most difficult of these had been the favored market access regime that was now in place in India, which essentially boiled down to if it was not manufactured in India, then it could not be merchandised there, which had the potential to foreclose that market to foreign players, including the US.

The concern of India was mainly focused on information security and protecting the security of the country. This concern was empathized by the US but the security of Indian products was not related to where it was made, it was related to how it was made and there were reasonable ways to addressing those security concerns for which the Industry is prepared to address, Garfield added.

These issues are important for US relationship with India. They are in fact quite significant because of the potential contagion effect.

 

 

 

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