* U.S. says India needs to work harder to free up trade
* India welcomes U.S. ease on technology export restrictions
* U.S. wants "level playing field" for trade with India
(Recasts, adds quote in paragraph 15)
By Matthias Williams and Rohan Dua
NEW DELHI, Feb 7 U.S. commerce secretary Gary
Locke expressed concern on Monday over India's restrictive trade
policy, saying it impeded investment despite growing economic
and security ties between the two nations.
Despite its growing global weight, India is still only the
14th biggest trading partner for the United States, and
obstacles from outsourcing controversies to the Doha world trade
round and market access have put the brakes on faster
"Even though India has made tremendous strides to open up
its economy, there is much more work that is left to be done,"
Locke told a conference in New Delhi after a meeting with Indian
trade minister Anand Sharma.
The two reviewed progress on some thorny issues such as
market access and non-tariff barriers.
"While many tariffs have come down, others remain. Even when
there are not outright tariffs there are non-tariff barriers
that limit trade and investment," said Locke, alongside Sharma.
The stakes on trade are high as the United States and India
need each other to meet ambitious export targets amid a sluggish
U.S. economic recovery, yawning trade deficits with China and
fears of global imbalances sparking a standoff.
As part of its efforts to boost trade with India, the United
States has said it would ease restrictions on exports of
high-technology goods to India in recognition of stronger
economic and national security ties.
On Monday, Sharma welcomed that move.
"There will be full cooperation in space technology, nuclear
technology and other high-end technologies between the U.S. and
India," Sharma told reporters.
A bilateral trade boom has seen total flows treble to $36.5
billion in goods in the decade to 2009/10, but the United States
slipped from number one to three in India's trading partners.
India lags China, the United States' third biggest trading
The Obama administration wants to double its exports to
bolster domestic growth and create jobs.
But both sides have accused each other of policy
foot-dragging, especially over the Doha trade talks. In India
there is a sense that New Delhi is much keener to push for a
deal than Washington.
The United States has criticised India for not assuming the
responsibility that comes with its growing economic clout in the
world and for insisting on shielding many of its sectors.
Locke reiterated this stance on Monday, saying U.S.
companies should have the same opportunities as Indian firms.
"Ultimately, all that America seeks is a level playing field
for its companies, where the cost and the quality of its
products and services determine whether or not they secure
business," Locke said.
Temperatures have also risen recently over a U.S. visa fee
hike that is expected to hit India's IT industry, as well as
proposed tax changes that would end breaks for U.S. firms that
create jobs and profits overseas.
But Indian trade secretary Rahul Khullar said on Monday
India would not go rushing to the World Trade Organisation (WTO)
to settle the dispute over an increase in U.S. visa fees.
(Additional reporting by Jonathon Burch; editing by Malini
Menon and Yoko Nishikawa)