Key laws get a second look as US pact nears

As India and the US inch closer to a trade pact, New Delhi is reviewing the timing and contours of pending policy measures sensitive to the interests of American tech giants.

- Gireesh Chandra Prasad & Dhirendra Kumar

These include the proposed Digital Competition Bill, a comprehensive e-commerce framework, and new income attribution rules for non-resident enterprises, according to three people familiar with the matter.

The recalibrations are being considered to ensure the policy measures align with the broader objectives of the India-US trade deal and reflect India's commitment to a trust-based regulatory framework and investment requirements.

"Policy measures which are on the drawing board can also be a bargaining chip in bilateral treaty negotiations," said the second person quoted above. Both of them spoke on condition of anonymity.

The ministry of finance, the departments for promotion of industry and internal trade, and commerce, and the Central Board of Direct Taxes (CBDT) did not reply to queries emailed on Friday.

India earlier cut customs duty and scrapped the equalization levy on digital services rendered to Indian businesses by companies such as tech giants Google and Meta.