New Delhi, Jul 11 (IANS): India Monday said its high-technology cooperation with the US has "underperformed" in commercial sectors, and called for increased focus on research and development, design, joint production and commercialization.

"There is a shared perception that the HTCG has in a sense underperformed and underachieved, especially in commercial sectors," Foreign Secretary Nirupama Rao said at the eight meeting of the India-US High Technology Cooperation Group (HTCG) here.

"While the focus has been on conventional trade and market access, we must now focus equally on promoting cooperation in research and development, design, commercialisation and production," said Rao.

Rao held talks with Eric L. Hirschhorn, US under secretary of industry and security, and discussed a host of issues relating to expanding trade in dual-use technologies. The HTCG was set up in 2002 for promoting high-technology trade between India and US by addressing systematic barriers.

The meeting took place ahead of US Secretary of State Hillary Clinton's visit to India for the July 19-20 India-US strategic dialogue during which the easing of high-tech trade will be an important area of discussion.

Rao stressed that the two sides must not only focus on barriers to trade, but also on expanding commercial opportunities. In the defence sector, Rao said, India would focus on building national capacity through joint production, joint research and development and transfer of technology.

"The regulatory framework in both countries should evolve in a manner that facilitates trade and expands opportunities for collaboration in defence equipment and services," she said.

She exhorted the two sides to explore innovative models to harness opportunities in the aviation sector, aircraft and aircraft components, air traffic management, repairs and maintenance, aviation safety and security and capacity building.

The US chose to focus on tariff and non-tariff barriers and pressed India to remove these to ease procurement processes to increase bilateral defence and high-tech cooperation.

"India has embarked on a military modernization program, which is expected to receive $35 billion over the next five years," said Hirschhorn.

"We must find new ways to break down tariff and non-tariff barriers to trade that stifle cooperation," Hirschhorn said. He added that US companies have got contracts worth $8 billion from India in the last few years, but stressed that there's enough room to grow this business.