Open up e-commerce, food industries for FDI: US to India

NEW DELHI: The US on Thursday asked India to open its e-commerce sector to foreign investment.

United States Trade Representative Michael Froman who is visiting India to participate in the tenth India-US Trade Policy Forum, called for liberalization of the food, civil aviation and business-to-consumer e-commerce sectors.

"Liberalizing the food, civil aviation and business-to-consumer e-commerce sectors are important initial steps to open India’s market. Opening the defense, rail and broadcast sectors to foreign investment has also sent a positive signal," he said while talking about India-US trade relations here.

Emphasising on a free and open digital economy, Froman called for rules that prohibit customs duties and discrimination for digital products, ensure the free flow of data and combat localization requirements, and protect both the consumer and the integrity of the Internet.

“The digital marketplace is to play an increasingly central role in the overall flow of goods and services, and the only way to ensure the broadest possible diffusion of its benefits is to keep that marketplace open and free,” he said.

Overall, he said that there needs to be continued work on improving the business environment as continuing the work of creating fairness and transparency in regulatory practices is central to building and maintaining confidence.