Modi, Biden to address bread and butter issues in relationship

New Delhi, June 20

After the boom of the 21-gun salute a feature of every State Visit fades away, PM Narendra Modi and US President Joe Biden on Thursday will sit down to qualitatively transform bilateral ties. But besides the futuristic promise of collaboration in artificial intelligence, semiconductors, 6G and maritime security, both leaders will also dwell on bread and butter issues that have been in limbo for long.

One of these is the long wait for non-immigrant visa issues which is affecting entrepreneurs. In some categories this wait extends for one year, though it has reduced from three years immediately after Covid restrictions were lifted. For New Delhi, another burning issue is that thousands of computer programmers go for short stays of a few years to the US, but their social security deductions are never transferred to India. In particular, India would like the cap on H1B visas to be removed and time for L1 visas (intra-company transfers) to be reduced.

PM Modi is also slated to raise the issue of restoration of US Generalised System of Preferences (GSP) under which low duty was applied to Rs 40,000 crore of merchandise imports from India. The US had said the issue will be taken by its Congress but as yet there are no signs of it.

The US too has issues that it feels hit its biggest revenue earner worldwide the digital economy. Washington wants India not to insist on localisation of data and instead allow free flow of data between nations. It also wants India not to insist on digital services tax.

The US is also keen that India drop its insistence on staying away from the “trade pillar” of the Indo-Pacific Economic Framework.

Having resolved to enter into strategic proximity, both sides are also expected to touch on the “mini trade war” that has seen US impose penal duties on Indian steel and aluminium and India retaliate by doing so on over two dozen US imports.