1.8.3. Major issues of Contention in Economy

♤ Major issues between the two countries that need attention-

o Barriers to the movement of goods and services, and deeper integration into global supply chains, thereby creating jobs and generating prosperity in both economies

o The doubling of H-1B & L1 visa fees by USA which is expected to adversely impact Indian IT companies in USA.

o The recent decision by the Trump Administration in US to make the extension of H-1B and L1 Visas stringent as part of immigration reforms. If the proposal passes, 500,000 to 750,000 Indian H-1B visa holders could be forced to leave the U.S., according to IndiaToday. Recently, on 10 January 2018, media reports suggested that the US has assured India that there would be no changes in the H-1B Visa Programme.

o Annual cap of 85,000 H-1B visas: India wants this to be raised, event the the US multinational corporations have urged the same.

o India-USA solar dispute: The US trade complaint at WTO Dispute Resolution Body (DSB) in 2013 made the case that the Jawaharlal Nehru National Solar Mission subsidies were available only if developers used equipment produced in India, violating a key global trade rule. The US considers the program as discriminatory points out that the U.S. solar exports to India had fallen by 90 percent from 2011.

o The United States won the case in 2016, when WTO appeals judges ruled India had broken the trade rules by requiring solar power developers to use Indian-made cells and modules. India had until Decemeber 14, 2017 to comply with the ruling and it told the DSB last week that it had done so.

o However, the US has complained that that India has failed to comply with the ruling, triggering a fresh round of litigation.

o Public Food Stockholding Issue at the WTO: The talks at the WTO’s 11th ministerial conference, at Buenos Aires in Argentina in December 2017 collapsed after the US went back on its commitment to find a permanent solution to the public food stockholding issue, a key matter for India.