NEW DELHI: India's demand for social security cover for its professionals in the United States is back on the discussion table, with the US seeking details of similar universal benefit schemes in India to decide on the course of negotiations for a totalisation pact.
The resumption of talks on the pact after a gap of five years signals improvement in India-US ties after Prime Minister Narendra Modi's successful US visit in September last year followed by President Barack Obama's visit to Delhi on Republic Day this year.
India has for the first time rolled out a slew of universal pension and social security schemes, which were announced in the budget in February, strengthening India's negotiating position for the bilateral pact. Totalisation pact has been India's key demand in the bilateral talks given that Indian professionals contribute more than $1 billion each year to the US social security through federal taxes without getting any benefits in return.
A US government delegation met Indian embassy officials in Washington earlier this month. An Indian team will follow up on the talks with a visit to Washington next month.
"They sought details of the social security schemes in India to take totalisation pact talks forward. We informed them about the budget announcements but they have sought more information to evaluate whether India's social security schemes are good enough to sign a bilateral pact," said a government official, requesting not to be named.
The Modi government has rolled out Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Atal Pension Yojana (APY).
Unlike India's fledgling schemes, social security is the largest social welfare programme in the United States, accounting for 37% of the government expenditure and 7% of GDP.
Times of India
