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economy | IST

India to allay US concerns on trade, ecommerce and data localisation during Jaishankar-Pompeo meet

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Union external affairs minister Subrahmanyam Jaishankar will try and allay US concerns on ecommerce and data localisation and apprise him of steps being taken to bridge the trade deficit.

Union external affairs minister Subrahmanyam Jaishankar will try and allay US concerns on ecommerce and data localisation and apprise him of steps being taken to bridge the trade deficit.
"Indo-US trade deficit has significantly come down since US president Donald Trump was elected. There is a misconception about high tariffs imposed by India. Indian tariffs are in line with WTO rules. There needs to be a conversation and a better understanding of domestic compulsions," said a government source.
However, it is unlikely that any trade issues would be resolved during this meeting as separate negotiations are on between US trade representative and the union commerce and industry minister Piyush Goyal
The meeting between US secretary of state Mike Pompeo and Jaishankar will set the tone for Indo-US relations in the next five years. While it is unlikely that any agreements will be signed during this visit, the visit would help Jaishankar and Pompeo build a working rapport. "They will have to do a lot of work together in the next five years," said a source.
This first high-level engagement with the US is taking place in the backdrop of America Iran tensions. India is likely to express concern about the large diaspora in Iran and impact on country's oil routes and air traffic.
Sources privy to the developments told CNBC-TV18 that Jaishankar was likely to urge the Americans to allow Indian companies to import Iranian oil. Indian oil companies have practically stopped oil imports from Iran after the US ended the waiver. New Delhi is also in talks with Iran and has requested its leaders to de-escalate the situation.
US has both publicly and privately expressed concerns about the S400 deal with Russia. Sources privy to the developments told CNBC-TV18 that India is confident it meets the criteria for a waiver under the Countering America' Adversaries Though Sanctions Act (CAATSA) sanctions.
Jaishankar is likely to tell the US secretary of state that the deal is important for India's security and was signed by India and Russia much before the sanctions came into effect.
During the meeting, Pompeo may bring up US' security concerns about Chinese technology giant Huawei. India is likely to convey that the country is in still early stages and India would eventually take a decision based on its own security and economic requirements.
Both India and the US will hold discussions towards finalising the Industrial Security Annexe which would protect classified information sharing between the two countries.
India is likely to talk about terror emanating from Pakistan during the meeting. There would be detailed discussions on Afghanistan and India's role in the region and cooperation in Indo-Pacific.
Prime Minister Narendra Modi will be meeting Trump on June 28 on the sidelines of G-20 summit in Osaka, Japan. This would be the first meeting between Modi and Trump after the recent general elections in India.