US raises concerns over India's FDI norms on defence, insurance

The United States has raised concerns over investment related issues in India under FDI policy in sectors like defence, retail trade and insurance, Parliament was informed on Monday.

Minister of state for commerce and industry D Purandeswari said in a written reply to the Lok Sabha that the US Trade Representative and the business community have raised "the following concerns relating to investment in India: restrictions under FDI policy in sectors like defence, retail trade, financial sectors such as insurance and pharma".

They have also raised concerns on issuance of compulsory licensing (CL) under intellectual property right policy and preferential market access policies in some sectors, she said.

Under the Indian Patents Act, a CL can be issued for a drug if the medicine is deemed unaffordable by the government and grants permission to qualified generic drug makers to manufacture it.

As per the WTO agreement, a CL can be invoked by a national government allowing a company to produce a patented product without the consent of the patent owner in public interest.

In an another reply, he said that the US has not raised any objections on India's food security ordinance at the WTO.

"There has been no objection and or condition put by USA to the India's food security ordinance at the WTO, so far," he added. The bill seeks to give three-fourth of the nation's population the right to get 5 kg of foodgrains every month at highly subsidised rates of Rs. 1-3 per kg.

Source: Hindustan Times