India deserves to be in NSG, US will work for it: US Ambassador to India

New Delhi: The US is "disappointed" that India was not admitted to NSG during its recent plenary in Seoul, US Ambassador to India Richard Verma said on Monday but asserted that it will continue to work with all the members of 48-nation grouping on India's accession in the months ahead.

Referring to Indo-US civil nuclear cooperation, he said the two sides have moved forward on a 15-year project to build six Westinghouse reactors producing power for some 60 million people.

"This is a deal that had been pending for 10 years, and we were pleased to see it move even closer to fruition."

Addressing the Atlantic Council US-India Trade Initiative workshop, Verma talked about the US' strong support for India's role in global institutions, like having a seat on a reformed UN security council. "We continued to welcome India's interest in APEC, and we strongly affirmed our support for India's accession into the multi-lateral export control regimes," he added.

Read: After spat over NSG, China says border dispute a challenge for Sino-India ties

"With regard to the Nuclear Suppliers Group (NSG), six years ago, President (Barack) Obama first expressed his support for India's membership in the NSG. Since that time, we have worked closely with our Indian counterparts and NSG members to help advance India's case for membership. India has a strong record, and deserves to be included in the NSG.

"That is why the Administration, including senior White House and State Department officials, made a concerted effort to secure India's membership in the recent NSG plenary session held in Seoul. We were disappointed India was not admitted during this recent session, but we will continue to work constructively with India and all the NSG members on India's accession in the months ahead," the top US envoy said.

India faced stiff opposition from China and a few other countries and the fact that it is not a signatory to the Nuclear Non-Proliferation Treaty (NPT) was used for foiling India's bid at the Seoul meeting despite the US' strong backing.

Read: Diplomatic efforts prevented India from gaining NSG entry: Sartaj Aziz

Verma also said that the US' designation of India as a Major Defence Partner will bring the militaries, industries, and defence ministries of the two countries even closer in the years ahead.

In climate and clean energy, US has launched several new clean energy financing programmes to support India's 175 GW target for renewable power, he said noting that both Obama and Prime Minister Narendra Modi were committed to full implementation of the historic Paris climate agreement.

"We are in this with India for the long-term in bringing clean reliable power to the 300 million Indians who lack it and simultaneously battling to keep the earth's temperatures from rising to dangerous levels," he added.

Referring to the recent meetings between Obama and Modi, who was in the US earlier this month, he said they helped to institutionalize the bilateral cooperation and put it on a long-term footing for close collaboration in several key areas.

"In short, the Prime Minister's visit marked a new level of strategic convergence and consolidation in our partnership," he said.

With regard to ease of doing business, he said India has made good progress on taxes. "We appreciate what the Prime Minister and Finance Minister have said about the end of retroactive taxation it was an important message," he said.

The US also has been able to resolve dozens of old tax cases with the Finance Ministry, and recently entered into an advanced pricing agreement with the government, which allows for even greater certainty and predictability from a tax perspective for companies entering India, he said.

On the legislative front, he said the US appreciates the steps taken to reform the bankruptcy code which will help address not only the banking sector’s concerns about non-performing assets, but also improve the business environment by allowing companies dissolve a business in a timely and efficient manner.

With regard to enhancing IPR protection, which is a necessity for attracting greater foreign investment, he welcomed India’s recently released IPR policy as a step in the right direction towards nurturing a culture of innovation and entrepreneurship.

On increasing pace of bilateral trade, Verma said, there is need to further liberalise markets and to improve investor confidence.

"One area where I would like to see greater progress is in our ability to launch negotiations on a bilateral investment treaty (BIT). We have been on-again off-again for about 8 years in our pursuit of a treaty.  And I am afraid things have become a bit more difficult," it said.

In India’s recent model draft BIT, there were departures from the high standards that we had seen in other treaties it had negotiated, for example with South Korea and Japan, he said.

"We will keep working to narrow our gaps, but today, unfortunately those gaps do prevent us from moving forward and putting in place the kind of structural protections that investors, in both our countries, have come to expect in international commerce," he said.

With regard to mega trade pacts, he said, India is reviewing its trade posture and policies now, and it must have a trade policy that addresses its unique history and developmental outlook.

"Similar debates are going on right now around the world. But I hope in the end, further integration into world trading markets and a lowering of tariff and non-tariff barriers is the path India chooses. That’s the best way to support worthy initiatives like Make in India, Digital India, Clean India and so much more," he said.