The Information Technology and Innovation Foundation submits written testimony to the U.S. International Trade Commission regarding its Investigation No. 332-550, Trade and Investment Policies in India, 2014-2015. The Commission’s investigation is assessing changes to India’s trade and investment policies and environment in 2014 and 2015. ITIF explains that the incoming Modi administration has taken a number of concrete and laudable steps to liberalize India’s trade and investment policies and embrace market-based economic growth. However, it also notes that a number of concerning policies—many introduced by the previous Singh administration—remain in place and have not been repealed or modified, and even the Modi administration has introduced several new potentially trade- and investment-distorting policies. These policies affect in particular U.S. enterprises competing in India’s information and communications technology (ICT), life sciences, retail, and renewable energy sectors.
History has shown that India’s economy flourishes most when it embraces the core tenets of free and competitive markets, open and non-discriminatory trade, and openness to flows of goods, technology, capital, and people. ITIF encourages the Modi administration to continue to embrace reforms that will further liberalize India’s trade and investment policies and to put the country on a path that it’s economy can flourish to the fullest extent possible.