Seeking an economic system in India that rewards and protects intellectual property, the US industry has urged Finance Minister P Chidambaram to lift the FDI caps in important sectors like insurance and defence.
However, the views of Chidambaram, who is currently in the US, were not immediately known.
The finance minister engaged with the executives on important topics that have dominated the bilateral commercial relationship in recent months -- tax treatment of investments in India, and the protection of intellectual property (IP) -- the USIBC said in a press statement.
It noted that collaboration in innovative technologies will require "an ecosystem that rewards and protects IP and discussed the need for improvements to infrastructure and increased investment in defence and energy."
USIBC advocated for the lifting of FDI caps in important sectors like insurance and defence, and for adjustment of the retail policy to attract major investment and organised players into India, the statement said.
"The Finance Minister affirmed the strong ties between India and the United States and the importance of the commercial relationship," USIBC President Ron Somers said.
He said that bilateral trade of USD 500 billion by 2020 is an achievable goal if they work together in partnership in an environment that provides predictability, consistency and transparency.
"Outstanding issues will be resolved through constructive dialogue, and USIBC looks forward to working with India to enable such dialogue," Somers said.
On India's push to develop local manufacturing, the group emphasised that market-based incentives rather than mandates should be the drivers that attract manufacturing, it said.
While appreciating the progress made to date on the manufacturing policy, the executives recommended that India make clear that the private sector is excluded from any localisation requirements.