Page 60 - IACC Newsletter March-April 2014 Issue 03

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Overseas branches of Indian Financial Institutions in a jurisdiction having IGA 2 agreement or in a jurisdiction that does
not have an IGA but permits financial institutions to register and agree to an FFI agreement, may register with US
authorities and obtain a GIIN before 1 July 2014, to avoid potential withholding under FATCA, RBI pointed out.
"Overseas branches of Indian Financial Institutions in jurisdiction that does not have an IGA and does not permit
financial institutions to register and agree to a foreign financial institution (FFI) agreement may not register and their
overseas branches would eventually be subject to withholding under FATCA," RBI said.
The government has further advised that if registration of the parent bank / head office is a pre-requisite for a branch to
register, such banks may register as per the time line indicated.
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U.S. Consul General Opens New Commercial Office in Ahmedabad
On June 10, U.S. Consul General Peter Haas inaugurated a new commercial office in Ahmedabad, Gujarat. The office
houses U.S. Commercial Service staff members who connect U.S. companies with Indian counterparts in order to
promote U.S. exports to India as well as Indian investment in the United States. This new office marks a significant
upgrade of the U.S. government presence in Gujarat.
Speaking at the occasion, Consul General Haas said, “Today’s opening demonstrates the United States’ strong
commitment to promoting U.S.-India trade and investment. Opening a new commercial office in Ahmedabad signals
that the U.S. government is confident that our bilateral economic relationship will continue to grow for many years
to come.”
The U.S. government set up its first commercial operation in Ahmedabad in 1997. In the subsequent 17 years, the U.S.
Commercial Service team has brought multiple high-level trade missions from the United States to Ahmedabad,
recruited Indian buyers to attend U.S. trade shows, and connected many U.S. and Indian companies to increase imports
and exports between our two countries. Two-way trade between the United States and India has already surpassed
$100 billion per year, almost double the annual level of three years ago.
Source: mumbai.usconsulate.gov
Floor Remarks by Senator John McCain on the U.S.-INDIA Strategic Partnership
U.S. Senator John McCain (R-AZ) recently delivered the following remarks on the Senate floor on the strategic
partnership between the United States and India, which Senator McCain will visit next week:
“Mr. President: Next week, I will travel to India where I look forward to meeting with Prime Minister Modi, his national
security team, and other Indian leaders. I am excited to be returning to New Delhi, and I do so hopeful about what the
Prime Minister’s election could mean for the revitalization of India’s economy and its rising power, and for the renewal
of the U.S.-India strategic partnership.
“National elections in India are always a remarkable affair: Over several weeks, hundreds of millions of people peacefully
elect their leaders—the largest exercise of democracy on the planet. But even by Indian standards, the recent election
that brought to power Prime Minister Modi and his party, the BJP, was a landmark event: It was the first time in 30 years
that one Indian political party won enough seats to govern without forming a coalition with another party. This gives the
Prime Minister a historic mandate for change, which Indians clearly crave.
“I want Prime Minister Modi to succeed, because I want India to succeed. It is no secret that the past few years have
been challenging ones for India – political gridlock, a flagging economy, financial difficulties, and more. It is not my place,