The US Government has announced the Validated End-User (VEU) programme aimed
at facilitating and increasing high-technology trade with India. According to
Mario Mancuso, under secretary of commerce for industry and security, the programme
is a sign of improving economic engagement between New Delhi and the United States
over the last several years. In effect, the programme will allow US exporters
of high-tech equipment to sell to Indian customers without licenses.
senior Commerce Department official also said that the Validated End-User (VEU)
programme will enable US companies to capitalise business opportunities by eliminating
individual license requirements on exports of US-controlled items to certain customers
1999 roughly a quarter of US exports to India required a license. Today that figure
is around one per cent," said Mancuso.
(VEU) will enable US companies to sell certain items to select pre-identified
customers who have a demonstrable track record of using sensitive US technology
responsibly," Mancuso said here.
announcement takes place against the backdrop of a pretty impressively and progressively
improving economic engagement over the last several years with India.
extension of VEU to India supports the Bureau of Industry and Security''s most
important policy to proactively accelerate and elevate our engagement with the
most important markets of the world," he said.
will facilitate high tech trade while at the same time maintain secure export
control system and will create a lot of market opportunities to exporters particularly
in electronics, avionics, aerospace and life sciences sectors," Mancuso said.
some, the high tech equipment could have possible military applications. The initiation
of this step almost certainly paves the way for increased sales of avionics and
aerospace equipment by US companies to India. This holds a certain amount of significance
in the defence sector, given the increasing number of contracts currently being
issued by the Indian Armed Forces.
also holds considerable significance for the civilian sector given the fact that
India would like to enhance and consolidate its presence in the aerospace manufacturing