India's trade, investment, and industrial policies are to be the focus of an investigation by a US government agency amid concerns that a wide range of Indian policies discriminate against US trade and investment.

The International Trade Commission (USITC) will report on recent policies and measures in India that affect US exports and investment and evaluate the effects of any barriers on US firms and the economy.

It intends to draw up a tally of restrictive trade and investment policies by India, determine which sectors of the US economy are most affected by these policies, and describe the competitiveness of Indian firms in these sectors.

The USITC will also provide several case studies of US firms or industries that have been particularly affected by India's restrictions.

The probe 'Trade, Investment, and Industrial Policies in India: Effects on the U.S. Economy' follows a request from the Senate Committee on Finance and the House Committee on Ways and Means.

The lawmakers say US exports to India are low given the size of its market, standing at $22.3bn in 2011, and that US foreign direct investment (FDI) in India is also low.

"India has a complex, non-transparent tariff and fee system and byzantine and overburdensome customs procedures, and it maintains significant tariff and non-tariff barriers to US goods and service participation in sectors including retail and agriculture," they added in a letter to ITC chairman Irving Williamson.

"The government has enunciated a broader policy objective to develop and support Indian domestic industries by forcing foreign firms to use local facilities and suppliers and to transfer their intellectual property to Indian entities.

"Government documents indicate that India is likely to adopt additional measures to this end, and expand these sorts of measures to additional sectors, creating significant concern and uncertainty for U.S. exporters and investors."

The USITC will deliver its report by 30 November 2014.