 "Piyush Goyal, Piyush")
THURSDAY, OCT. 3, 2024 Union Commerce Minister Piyush Goyal speaks at the reception and dinner hosted by the Ambassador of India to the US, on the occasion of the India-US CEO Forum and Commercial Dialogue, in Washington DC, USA. (Photo: PTI)
India will continue to have a dialogue with the United States (US) on a totalisation or a social security agreement to protect the interests of cross-border workers.
Commerce and industry minister Piyush Goyal, who is on a five-day visit to the US – September 30 to October 4 – said that while India has been proposing a totalisation agreement, the issue should have been sorted out decades ago.
Click here to connect with us on WhatsApp
“…when the numbers were small and the impact was manageable. Over a period of time, this was neglected by several governments in India. Therefore, now the dimension of the amount and the money collected by the (US) Treasury is so large that for any government, it will be a major decision,” Goyal told reporters in a briefing in Washington DC.
However, when Prime Minister Narendra Modi’s government came to power in 2014, India held discussions with the US on the matter. “The subject has festered far too long and is not going to resolve overnight… It’s going to take time, we recognise that,” Goyal said, adding that the Joe Biden administration has sent a detailed questionnaire to India about the social security systems in India and they have all been responded to.
According to the minister, the social security coverage details that have been shared with the US cover about 930 million people in India.
A totalisation pact, if agreed upon, will ensure that social security-related contributions for workers are not made in both countries. In case of relocation to India, the pact can enable professionals to remit their accumulated contributions made in the foreign country.
These contributions are typically in the form of insurance or pension. According to industry estimates, Indian companies in the US incur a loss worth $4 billion on social security contributions.
Goyal also said that while the issue was flagged during the minister’s meeting with US Trade Representative (USTR) Katherine Tai, the issue is not on the ‘agenda’ and will be pursued at ‘another time once there is a new Congress in place’.
During his visit, Goyal and US Commerce Secretary Gina Raimondo held the 6th Commercial Dialogue on Thursday. They reviewed the progress made in semiconductor supply chains, innovation handshake, energy-industry network, and the Indo-Pacific Economic Framework for Prosperity. They also signed a new memorandum of understanding (MoU) to expand and diversify critical mineral supply chains, with the aim of leveraging the two countries’ complementary strengths to ensure greater resilience in the critical minerals sector.
Goyal also ruled out the entry of multi-brand retailing in India, stating that such a move would destroy mom-and-pop stores like those in the US. However, India is open to all kinds of economic reforms necessary to accelerate growth.
“If the need arises, we can re-look at any of these (policies), or the government has the authority, through cabinet approval, to allow greater percentages (of foreign stakes in various sectors). Or we can go to Parliament and change it also, not a problem, though I do not think any of these requires parliamentary changes,” Goyal said.
“The important area where sometimes, and particularly in countries like the US, I hear voices is about multi-brand retail. And that is a no-no. I want to make it loud and clear that there will be no change in our policy on multi-brand retail. America has suffered the consequences of big tech and large retail, and the interplay of the two leading to almost the annihilation of mom-and-pop stores across the length and breadth of the country,” he said.
With inputs from PTI
First Published: Oct 04 2024 | 6:29 PM IST
