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US companies lean on India

by on09 March 2012

We don't like your domestic first policy

Leading US software and technology companies  have asked President Barack Obama to lean on the Indian government to reverse a policy that they said threatens US exports to the fast-growing economy.

The Business Software Alliance, Telecommunications Industry Association and other groups dashed off a stiff letter to US Trade Representative Ron Kirk saying they were "deeply concerned" by a plan that would require the Indian government to give domestic electronic goods preferential treatment in its purchases.

India's Department of Information Technology's covers "products that have undefined 'security implications'" and potentially software, the groups said. They said they are worried about the Indian government's plans to use its regulatory power to force government licensees to purchase domestic electronic products in a manner clearly inconsistent with the letter and spirit of India's World Trade Organization.

They appealed for Kirk's urgent assistance in addressing a development that could have a "devastating" impact on US companies' competitive stance in a key market in India and damage US-India trade. Basically the deal is supposed to encourage the growth of high tech industry in India, but the big foreign companies are worried it will do them out of the growing Indian market.

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