Social security agreement with US will take time, says Piyush Goyal | Economy & Policy News

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)

 

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 shared with the US encompass approximately 930 million people in India.

A totalisation agreement, if enacted, would prevent double social security contributions for workers in both countries. In the case of relocation to India, the pact could allow professionals to remit their accumulated contributions from 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 raised during his meeting with US Trade Representative (USTR) Katherine Tai, it is not currently 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 progress made in areas such as semiconductor supply chains, innovation partnerships, energy-industry networks, and the Indo-Pacific Economic Framework for Prosperity. They also signed a new memorandum of understanding aimed at expanding and diversifying critical minerals supply chains, leveraging the complementary strengths of both countries to ensure greater resilience in the sector.

Goyal also ruled out the entry of multi-brand retail in India, stating that such a move would harm mom-and-pop stores, as seen in the US. However, he emphasised that India is open to all necessary economic reforms to accelerate the country’s growth.

“If the need arises, we can re-examine any of these policies, or the government has the authority through cabinet approval to allow greater foreign stakes in various sectors. Or we can go to Parliament and change it as well, though I don’t think any of these require parliamentary changes,” Goyal said.

“The important area where I often hear concerns, particularly in countries like the US, is about multi-brand retail. And that is a no-go. 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 has almost annihilated mom-and-pop stores across the country,” he added.

(With inputs from PTI)

First Published: Oct 04 2024 | 6:29 PM IST