US allows sale of dual-use technology to India

Mumbai: The US has allowed American companies to sell high-tech dual-use products with potential military applications to pre-screened customers in India without an individual licence.

The US commerce department has announced a new `Validated End-User'' (VEU) programme to facilitate increased bilateral trade in high technology trade with India while keeping US export control regime in tact.

The VEU programme will make import of dual-use items, which have both commercial and military use, easy for Indian entities that meet US security requirements.

Also, the programme will meet US requirements of an inter-agency review process while at the same time helping American exporters remain competitive in the market.

US exports to India have increased 66 per cent since 2004, aided by a fall in the percentage of total items requiring a commerce department licence to less than one per cent from 24 per cent in 1999.

India''s growth has created new opportunities for US businesses and workers and the VEU programme could boost US high-tech exports to India in such areas as electronics, avionics, aerospace, and life sciences, commerce secretary Carlos M.Gutierrez said.

"American exporters benefit from access to India''s market, and the VEU builds upon the enormous progress made over the last six years in facilitating secure high-technology trade and investment while strengthening our cooperation on export controls," said Gutierrez.

"This common sense approach will make it easier for US companies to sell their products to pre-screened customers in India, while maintaining vigilance over US technologies," he added.

This will eliminate individual licence requirements for US companies on export of controlled items to certain customers in India with a track record of responsible use of such items.

Proposed by President George Bush in March 2006, the VEU programme was announced last week at the US-India CEO forum.

While US has gradually been relaxing controls on exports to India over the past several years, the current programme is expected to go further by enabling licence-free exports to authorised companies in India.