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US ends India tech restrictions

China, India hit by regulatory 'overkill'
Singapore (AFP) Jan 25, 2011 - Rising economic giants China and India are caught a web of strangling red tape where even getting a tourist visa is difficult, a survey of foreign business executives showed Tuesday. The "Regulatory Overkill" report by the Political and Economic Risk Consultancy (PERC) contrasts the stifling regulatory environment in the two nations with streamlined systems in financial hubs Hong Kong and Singapore. In a grading system with zero as the best possible score and 10 the worst, India struggled badly with a mark of 9.16, with China the second worst on 9.04. "India is one of the most over-regulated countries in the world," the PERC report said, noting that even getting a tourist visa was cumbersome. "In general, regulations are complex and non-transparent," the Hong Kong-based consultancy said, adding that procedures were onerous.

China's regulatory regime also came in for flak. "Many of the reasons are the same (as in India), foremost among them being that interpreting regulations is a major source of power of bureaucrats," PERC said. Hong Kong was perceived as having the simplest and most transparent regulatory environment in Asia, followed by rival global financial hub Singapore. "Hong Kong and Singapore are really the only two economies that place a high priority on simplicity and transparency in regulations," PERC said. "They write rules with more input from experts and businesses, and they make sure that government departments can be coordinated better by working online and that consumers can use this same technology to keep informed."

It said Hong Kong (0.98) and Singapore (1.08) "genuinely want to eliminate unnecessary paperwork, whereas many of the other countries view such paperwork as vital to justifying a role for the bureaucracy." Japan, Taiwan and South Korea were rated as next best. Indonesia (8.83) and the Philippines (8.26) both scored badly with problems including corruption and lack of implementation of regulations, the report said. The United States, which was graded for comparison, had a score of 1.51. PERC surveyed 1,370 expatriate executives in 11 Asian economies about how they perceived the regulatory environment in the countries or cities where they were working and the extent to which it affected their business.
by Staff Writers
Washington (AFP) Jan 25, 2011
The United States said it was ending export restrictions for India's defense and space industries, eyeing trade with a nation shunned for more than a decade over its nuclear weapons program.

President Barack Obama's administration also said it would welcome India into the club of nations that regulate export controls, bringing New Delhi full circle from an outcast to a member of international weapons controls.

The United States took major groups off a blacklist, including the Indian Space Research Organization, which leads India's space program, and the weapon-designing Defense Research and Development Organization.

Previously, the United States barred exports to the organizations of material and technology that could have military use.

"These actions will open important new opportunities for our companies and governments on cooperating in the defense and space areas," said Robert Blake, the assistant secretary of state for South Asia.

Blake, speaking Tuesday at Syracuse University in New York, said the United States would also support India's full membership in four groups that control exports including the Nuclear Suppliers Group.

Obama announced on a visit to India in November that he was easing the restrictions, but he did not provide details at the time.

The United States and its allies slapped sanctions on India in 1998 after New Delhi shocked the world with nuclear tests. India's historic rival Pakistan carried out its own tests days afterward.

But the United States soon reconciled with India. Former president George W. Bush and Prime Minister Manmohan Singh signed a deal in 2008 to cooperate on nuclear energy, despite India's refusal to join the Non-Proliferation Treaty.

The United States hopes that the agreement will allow its companies to cash in as India ramps up nuclear power to provide for a fast-growing economy.

The United States is also bidding to sell India weapons as it modernizes its military, particularly its aging air force.

Commerce Secretary Gary Locke, who called the easing of restrictions "a significant milestone in reinforcing the US-India strategic partnership," plans to head to India in early February to promote high-tech trade.

He will be accompanied by 24 companies include the Boeing Co., Lockheed Martin Corp. and Westinghouse Electric Co., according to the Commerce Department.

China has also asked the United States to ease restrictions on high-tech imports, but the United States has been concerned about Beijing's economic policies and the theft of intellectual property.

Blake recommitted the United States to supporting a global role for India, but said: "It is clear that building a strong economic plank is necessary in building a strategic partnership for the future."

Blake said he was "encouraged" by signs that India will expand access to its retail sector.

"I hope that the government realizes that further openings, such as in agriculture and defense sectors, would benefit Indian consumers and its economy," he said.

Big-box US retailers such as Walmart want India to ease rules that require them to partner with local firms, but many of the country's ubiquitous small shops fear they will be put out of business.



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