Public Diplomacy Public Diplomacy

An Overview

January 11, 2004

The India US High Technology Cooperation Group (HTCG) has its genesis in PM-President Bush Joint Statement of 9 November 2001. The HTCG was announced during then Under Secretary of US Bureau of Industry and Security (BIS), Kenneth I. Juster’s visit to Delhi through a Joint Statement on 13 November 2002. In the statement the two sides agreed to take concrete steps to pursue the commitment between Prime Minister and President Bush during their 2001 meeting to stimulate bilateral high technology commerce. The initiative was launched to enhance strategic trade with the U.S., including through improved access to controlled ‘dual use’ items from the U.S. The ‘Statement of Principles (SOP) for India-U.S. High Technology Commerce’ was signed in February 2003 in Washington DC, which established the mandate for the HTCG and the measures that the two sides would take to stimulate high technology commerce (Press Release).

The SOP created two broad agendas for HTCG: (i) High technology commerce and (ii) Strategic trade.

HIGH TECHNOLOGY COMMERCE

The focus is on:

  • promotional events
  • Generating awareness and understanding of market opportunities and regulatory environment
  • Facilitating business-business interaction, and
  • Identifying regulatory issues that need to be addressed.

Under this four industries were identified for special focus:

  • Information technology,
  • Nano-technology,
  • Biotechnology, and
  • Defence technology

STRATEGIC TRADE

We are interested in using the discussions to seek changes in U.S. regulations for India and understanding latest trends in US export licences for India. The United States wants to understand what we are doing to strengthen our export controls and in pursuing bilateral cooperation on export control capacity building.

India-U.S. dialogue on strategic trade (access to dual use items) covers four broad sets of issues:

  • Possible changes in U.S. licensing regulations and policies for India,
  • Industry outreach activities to educate Indian and U.S. private sectors on U.S. regulations,
  • Measures to enhance confidence on end users for dual use goods and technologies, and
  • Technology security, including India’s export control regime and India-U.S. cooperation on export control.

STRUCTURE OF HTCG

There is an official dialogue and a private sector forum. Official dialogue follows the private sector forum, so that, besides discussing strategic trade, it also deliberates on the discussions at the private sector forum.

FS and Under Secretary of Commerce lead the talks.

CII, FICCI and NASSCOM provide support for the private sector forum. On the U.S. side it is US-India Business Council (USIBC).

Government delegations come from MEA (AMS and D&ISA Divisions), Commerce, D/IT, D/S&T, D/BT, D/Space and MOD (DRDO and Production side). Depending on the need, M/Finance or D/Commerce and Industry are invited.

PAST HTCG MEETINGS

India-U.S. High Technology Cooperation Group has met thrice:

  • First meeting on 01-02 July 2003, Washington DC,
  • Second meeting on 19-20 November 2003, Bangalore and Delhi, and
  • Third meeting on 18-19 November 2004, Washington DC.

FIRST HTCG MEETING

"Financing Innovation Forum” was the theme of the first industry meeting held on July1, 2003, which focused on financing investments in high technology sectors; overall outlook of high technology sectors in India, with the special focus on four sectors-information technology, defence technology, life sciences and nano-technology; and private sector perceptions on doing business in India these sectors. There was also discussion on the role of venture capital.

The Official HTCG dialogue had a plenary session and two breakout sessions:

  • Facilitating and Promoting High- Technology Trade- Topics discussed included Customs Procedure, Barriers relating to IT products, E-Commerce, Data privacy.
  • Building confidence for Additional Strategic Trade.

SECOND HTCG MEETING

Forum on Advancing Synergy in Technologies was the theme of the second industry meeting held on 19 November 2003 which focused on India’s high technology capabilities, intellectual property rights besides sessions on information technology (coordinated by NASSCOM), biotechnology (FICCI) and defence technology (CII).

The format of official dialogue remained same as the first meeting. The topics discussed in the session on ‘Facilitating and promoting high technology trade’ included customs procedure, tariff procedure for IT products, data privacy law, IPR, standards and cooperation possibilities in defence technology, IT technology/ nano-technology, life sciences/biotechnology and tele-health.

Remarks by Kenneth I. Juster at luncheons hosted by CII in Bangalore and by FICCI in New Delhi in November 2003

THIRD HTCG MEETING

Third meeting of the HTCG was held in Washington on 18-19 November 2004, in which Data Privacy and Defence Technology were the main theme for the industry-government day while Strategic Trade and Trade Facilitation were the areas of focus on the government-government session.

NSSP and HTCG have contributed to a more predictable and liberal licensing policy for India in the US. It has led to a significant increase in bilateral high-technology trade, including licensed trade in dual-use items. The U.S. dual use licenses for India have doubled from 423 in FY 2002 to 912 in FY 2004. In value terms too, this trade has gone up more than three times from $26.78 million in FY 2002 to $90.06 million in 2004. The license approval rate has also increased from 84 percent to 90 percent in the last 2 years.

Remarks of MEA Spokesperson on the third meeting of India-US HTCG

Minutes of Third HTCG Meeting

Presentation on India Defence Procurement System - Anup Chatterjee, Nov 2004

CII Presentation on India US HTCG - Gen S. S. Mehta, Nov 2004

FICCI Presentation on Policy framework Governing High-Tech trade between India and the US – Dr. Amit Mitra , Nov 2004

Privacy and Cyber Security legal and policy issues - Joe Alhadeff, Nov 2004

Opportunities Confronting the U. S. – Indian Defense Industries - Alan Tarkenton, Nov 2004

HTCG Dialogue on Defense Technology - Serge Buchakjian, Honeywell, Nov 2004

India US Dual-Use Export Policies and Procedures - Goldman, Nov 2004



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