Unpleasant move
THE Indian industry and scientific community have strongly condemned the US decision to blacklist 40 Indian companies and laboratories along with their 200 subsidiaries. On November 13, the US slapped sanctions on more than 300 Indian and Pakistani government agencies, government-affiliated firms, laboratories and private companies in response to the nuclear tests conducted by the two countries in May.
The sanctions prohibit the blacklisted firms from buying goods which might have nuclear and military applications. According to Y S Rajan, senior advisor (technical), Confederation of Indian Industry (CII), New Delhi: "It is difficult to say how many industries will be affected. First, we need to find out what these companies were getting from the US and whether the ban on supply of those products would really have any implications on the industry."
The new sanctions have come as a shock, especially since only three days ago the US administration had relaxed sanctions against India and Pakistan, acknowledging the nations' progress in the nuclear non-proliferation dialogue. The new sanctions would not only hit premier government agencies such as the Defence and Research Development Organisations (DRDO), the Bhabha Atomic Research Centre (BARC) and the Indian Space Research Organisation (ISRO) but also a number of public and private-sector companies, including Bharat Heavy Electricals Ltd and Kirloskar Brothers Ltd.
The Indian government has called the US move "highly unfortunate". The ministry of external affairs has noted that the restrictions would interfere in the free flow of trade, technologies and finance. It will also have an adverse impact on mutually beneficial business interaction. Says commerce minister Ramakrishna Hegde: "India will take up the matter with the World Trade Organisation (WTO)." However, according to Article 21 of the General Agreement on Tariffs and Trade (GATT), a nation can invoke national security considerations to impose export restrictions and embargoes that are normally not in accordance with international trade rules.
In the case of ISRO, DRDO and other scientific research institutes, it is nothing but re-imposition of an earlier ban. Says G K Mehta, director, nuclear sciences division of the Jawaharlal Nehru University, New Delhi: "I don't think the ban is going to affect scientific research in India. The US is not the only source of technologies and components which we require. And, if we don't get it from any other country, we are capable of developing them indigenously."