At a joint press conference with the US President on 25 February at Hyderabad House in New Delhi, Prime Minister Modi said: «I have asked President Trump to continue to discuss the contribution of our social security experts as part of a totalization agreement. We will both be interested in that. Prime Minister Narendra Modi spoke of the need for the totalization agreement, while Foreign Minister Harsh Vardhan Shringla said that the two issues relating to the H-1B visa, which has a direct impact on the IT sector, and the totalization agreements with the US authorities were discussed. So why is it so difficult to sign this totalization contract? He reiterated that the longer-term plan was to work towards a comprehensive trade agreement. «India is ready to work with an open mind, with the will to open our hearts and markets, with a chance for Indian companies in the United States,» Goyal said of the free trade agreement. The United States has agreements with several nations, the so-called totalization conventions, in order to avoid double taxation of income in relation to social contributions. These agreements must be taken into account in determining whether a foreigner is subject to the U.S. Social Security Tax/Medicare or whether a U.S. citizen or resident alien is subject to the social security taxes of a foreign country. India supports the proposed discussions with the US Social Security Administration (SSA) on the long-standing totalization agreement, believing that the two countries` systems are now more compatible than before. The deal could help Indian companies in the United States save up to $4 billion in social security contributions a year.
Despite years of negotiations, the United States has not signed the Totalization Agreement, also known as the Social Security Agreement (SSA) with India, to protect the rights of IT and other service workers who share their professional careers between India and the United States. A totalization agreement, commonly known as the Social Security Agreement, exempts foreign workers with non-permanent visas from social security contributions in the country of employment, where they are not entitled to reimbursement. The Trade Promotion Council for India (TPCI) proposed Tuesday that India and the United States sign a totalization agreement because it will provide social security to Indian professionals in America. This is a long-term request from India for a speedy conclusion of the totalization agreement or the social security agreement with the United States.