Validated End-User (VEU) programme, which will enable US companies to capitalise business opportunities by eliminating individual license requirements on exports of US-controlled items to certain customers in India, was announced on Wednesday.

"In 1999 roughly a quarter of US exports to India required a license. Today that figure is around one per cent," said Mario Mancuso, the Under Secretary of Commerce for Industry and Security.

"It (VEU) will enable US companies to sell certain items to select pre-identified customers who have a demonstrable track record of using sensitive US technology responsibly," Mancuso said.

"The announcement takes place against the backdrop of a pretty impressively and progressively improving economic engagement over the last several years with India.

"The extension of VEU to India supports the Bureau of Industry and Security's most important policy to proactively accelerate and elevate our engagement with the most important markets of the world," he said.

"VEU will facilitate high tech trade while at the same time maintain secure export control system and will create a lot of market opportunities to exporters particularly in electronics, avionics, aerospace and life sciences sectors," Mancuso said.

"India is a strategic partner of the United States. It made significant progress in terms of implementation of export control laws and is a responsible member of the international system. This (VEU) helps to create a secure mechanism to further boost trade and anchor a deepening relationship between the countries," the senior Commerce official remarked.

Mancuso said that there was no delay or impediments in making the programme available to India but clarified that India cannot pursue military technology in this programme.

"The answer is no. The VEU programme will enable Indian companies to apply to be considered to be eligible but it will not go for military end users."

Mancuso pointed that the VEU programme was available to China too but a comparison could not be made between the two countries on its scope.

"India and China are very different countries and I would differentiate significantly for the purposes of this programme. India is a strategic partner of the United States.