Bravo! US upgrades India`s status to ease export controls for high-technology product sales

Washington, July 31: As soon as the Prime Minister Narendra Modi led government came in power, they focused on trade and economy as this two factors are key for a prosperous country. Taking several initiatives including Ease of Doing Business, Make in India led the country to earn more income and boost in relations with other countries too. India always tried to put a hold in the market of the United States and finally it has got the key. The United States has eased export controls for high-technology product sales to India by designating it as a Strategic Trade Authorization-1 (STA-1) country.

 

Notably, the United States Commerce Secretary Wilbur Ross on Monday announced that India is now designated under a Strategic Trade Authorization-1 (STA-1) country. He said that this is a very important change in India's status in the export control regime.

While speaking at a US Chamber of Commerce event, Ross said that the move to grant Strategic Trade Authorization status STA1 to India reflects its efforts to improve its own export-control regime, its adherence to multilateral export rules and its growing status as a US defence partner.

“STA1 provides India greater supply chain efficiency, both for defence, and for other high-tech products,” Ross said, adding that the elevated status would have affected about $9.7 billion worth of Indian goods purchases over the past seven years.

Indian Ambassador to the US, Navtej Sarna said that the same forum the US move was a logical step after the United States designated India a major defence partner in 2016. “It is a sign of trust, not only in the relationship but also in Indian’s capabilities as an economy and as a security partner, because it also presupposes that India has the multilateral export control regime in place which would allow the transfer of more sensitive defence technologies,” he added.

 

Interestingly, the announcement from Commerce Secretary Wilbur Ross comes ahead of high-level talks between the United States and India in September that will be attended by US Secretary of State Mike Pompeo and Defence Secretary Jim Mattis.

BACKGROUND:

The designation authorizes the export, re-export and transfer of specified items on the Commerce Control List (CCL) to destinations posing a low risk of unauthorized or impermissible uses. Currently, there are 36 countries on STA-1 list. India is the only South Asian country to be on the list. Other Asian countries designated as STA-1 are Japan and South Korea.