India has supplied comprehensive data on its social security programmes such as EPFO, NPS and ESIC to the United States, marking a significant step towards initiating negotiations on a bilateral totalisation agreement.
This agreement aims to exempt short-term visa holders from mandatory contributions to social security.
US Trade Representative Katherine Tai on Saturday said they have received information from India recently on the proposed social security agreement and there is a lot of work to be done on the subject.
Social security totalisation agreement was one of the key asks from the Indian side in the meeting of the Trade Policy Forum here, as it will significantly contribute towards enhancing services trade between countries and help Indian IT professionals who temporarily work in the US.
India has submitted all the relevant data on its social security schemes which was sought by the US to start negotiations on the agreement.
“Yes, the Indian government is in touch with our social security administration... We have received that information on the eve of the TPF... We have the information and the ball is back in our court, but it’s just landed in our court. So there is a lot more work to do to facilitate the conversation on India’s proposal,” Tai told reporters here.
She was here for the 14th TPF meeting. It was co-chaired by her and commerce and industry minister Piyush Goyal.
Under this agreement, an expatriate in either country need not contribute to the social security scheme of the host country. It will benefit a number of Indians, particularly from the IT sector, who are working in America and paying social security but are unable to get any benefit out of it.
When asked about the issues being raised by the US side on India’s import management system for specified IT hardware, Tai said they have asked India to hold consultations with them and other stakeholders on such matters.
Goyal in the TPF meet has elaborated on India’s objectives, including those related to national security concerns on the matter.
“We want to ensure that New Delhi creates a space for consultation not with us but with others, all stakeholders including our stakeholders,” she said.
She added that the consultation would ensure that such decisions do not disrupt the regulatory environment, which is important for both sides.
On increasing cooperation in the critical minerals sector, the USTR said these goods are critical to sustainable and resilient economic industrial future for both the nations.
The two ministers expressed commitment to launch future joint initiatives in certain areas, including critical minerals and trade in high tech products.
