Noting that a key aspect of India-US economic engagement is partnerships in high technology areas, Rao voiced the increasing concern among Indian businesses about the difficulties they face due to progressively stringent visa regulations.
"The Indian IT industry contributed USD15 billion in taxes in the US over the last five years," Rao told the Atlantic Council, a Washington think tank, ahead of the India-US strategic dialogue in Washington on June 13.
"Ironically, the same industry is subject to new restrictions imposed on H1-B and L1 visas," the ambassador said.
"We hope this is not a trend that will be sustained. The logic and rationale of our partnership merits otherwise," she added.
"We also hope that as our investment flows further increase, it would also become easier for Indian financial institutions to expand their operations in the US," Rao said.
As India and US 'look at ways and means to expand trade and investment, we are also working together to find solutions to the challenges of clean energy, food security, health and education' through various initiatives, she said.
"As we upgrade our infrastructure, provide for clean and sustainable sources of energy to power our economic growth and modernize our agriculture to improve the livelihood of our rural population, there will be tremendous opportunities for US businesses," Rao said.