Washington: India will continue discussions with the United States on the long-pending totalisation agreement, which aims to exempt expatriates from paying into the social security systems of their host countries, Commerce and Industry Minister Piyush Goyal said on Wednesday. However, he noted that resolving the matter will take time.
As per reports, speaking to reporters in Washington, Goyal acknowledged that the issue should have been addressed earlier, when the amounts involved were smaller. "Now, the scale of funds collected by the US Treasury is significant, making it a major decision for any government," he explained. He added that India has been engaged with the US on this issue since Prime Minister Narendra Modi's government took office in 2014.
Reportedly, despite the challenge, India remains committed to advancing the dialogue. "It’s a complex issue that has been unresolved for too long. While it won’t be settled overnight, we will continue discussions with the US," Goyal said.
Goyal also shared that the Biden administration recently sent a detailed questionnaire on India’s social security systems, which India has already responded to. He highlighted that India’s social security coverage extends to 930 million people, surpassing the required threshold for meaningful discussions on the totalisation pact.
The totalisation agreement is crucial for many Indian professionals, especially in the IT sector, who contribute to US social security schemes without benefiting from them. India has long sought the early conclusion of this agreement, which is estimated to affect over 1 billion dollars in annual contributions made by Indian workers in the US.
During his visit to the US from September 30 to October 3, Goyal co-chaired the India-USA CEO Forum and the 6th India-USA Commercial Dialogue with US Secretary of Commerce Gina Raimondo. The totalisation issue was raised in these meetings.
Addressing concerns over India's customs duties, Goyal dismissed allegations of excessively high tariffs, noting that every country protects certain industries. He pointed out that the US imposes a 163 percent duty on peanut butter to safeguard its farmers, while India has varied customs duties depending on national interests.
When asked about the resumption of trade with Pakistan, Goyal stated that the decision lies with Islamabad, as it was Pakistan that halted trade relations with India.
On foreign investment, Goyal cited Apple's success in India, revealing that the tech giant has exported smartphones worth 5 billion dollars in the first few months of this fiscal year. He expects Apple’s exports to increase to 15-16 billion dollars this year.
Regarding critical minerals, Goyal mentioned ongoing talks with the US about potential collaboration in third countries to secure access to these essential resources, which are vital for producing clean energy technologies and electric vehicle batteries.
Source- PTI
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