Engineering export from the country has been hit hard by 'Buy American' law, which gives protection to domestic companies.

Around 15 states in the United States are reportedly practising this dictum, making it difficult for Indian companies to penetrate those markets.

According to Ravi Sehgal, regional chairman of Engineering Export Promotion Council, India was losing business worth $ 2 billion owing to this. US states were likely to stick to their policy.

George Sibley, US consul general in Kolkata, said the matter should be taken up at the government level. However, he expressed doubt whether it would be any help since India has one of the largest tariff barrier in the country and the balance of trade was loaded against the US.

"When there is such huge trade deficit, it is unlikely that you would get a favourable response," Sibley said while addressing a seminar on 'Doing Business with USA', organised by the Federation of Indian Exporter and Indo-American Chamber of Commerce (eastern region).

Noting that the trade deficit is not sustainable over a long period of time, Sibley said this could lead to backlash in the US. Last fiscal, India's export to the US rose by $ 2 billion as compared to $200 million rise in US export to India.

'This is a problem," Sibley warned. India is ranked at 15 among countries with which US had a trade deficit.

Sehgal pointed out states like North Carolina and New Jersey had not signed the General Procurement Agreement, which was compatible with World Trade Organisation.

"In these states, Indian companies can not participate in government projects. Since Indians supply to the infrastructure sector, which was state funded, exporters were being excluded. This is a big opportunity lost for us," he pointed out.