In what could widely benefit defence public sector undertakings, US may lift restrictions on export of dual-use items during US president Barack Obama’s visit to India next week.

Companies that will benefit include Defence Research and Development Organisation (DRDO), Ind­ian Space Research Organ­isation (Isro), Bhabha Ato­mic Research Centre (Barc) and Nuclear Power Corpor­ation of India (NCPIL).

Rough estimates suggest that removal of these restrictions would result in additional trade of $30 billion between India and US. At present, the two-way goods trade between India and US is $36.4 billion.

“While US has gradually lifted export restriction on dual-use items, we hope that Obama’s visit will further help us to update it with our practice for dual-use technology in adherence to NSG,” Shiv Shankar Menon, national security advisor to prime minister said. In lieu of this, India may have to sign Convention on Supplementary Comp­ensation (CSC) on nuclear damages as well as address concerns of American companies on account of newly enacted Nuclear Liability law.

“Once these restrictions are lifted, it is going to be beneficial to both countries as we would be able to exchange dual-use items. This in turn will result in major boost to research activities in India,” KT Chacko, former DGFT and director of Indian Institute of Foreign Trade said.

India and US have been negotiating lift of export restrictions on dual-use items for several years. The issue got a fresh impetus during prime minister Manmohan Singh’s visit to US in November last year. The two leaders had jointly stated that strengthening high technology trade between their countries was part of their strategic dialogue and partnership. They had reiterated that technology security was in their mutual interest to invigorate their partnership.

Amit Mitra, secretary general, Ficci said, India is looking at fructification of earlier commitment on lifting export ban on dual-use technology during Obama’s visit this week. Mitra was speaking at the US-India Strategic Par­tnership forum held by Ficci and Brookings Institutions. Brookings is a Washington-based institution.

“There are 16 types of broad dual-use technology that US can deny. While just four out of 16 face denial when it comes to European countries, the rejection rate is very high for defence PSUs in India with 10 out of 16 being denied to us despite India being a signatory to NSG,” he added.