Outsourcing: US 145;advice146; rankles Sinha

Election year sabre-rattling in the US over outsourcing of jobs to India is leading to election year prickliness in India, with External Aff...

Election year sabre-rattling in the US over outsourcing of jobs to India is leading to election year prickliness in India, with External Affairs Minister Yashwant Sinha today terming as 8216;8216;retaliation8217;8217; comments by US diplomats here that there existed a need for India to further open its markets.

8216;8216;It smacks of retaliation that if you don8217;t open up, we will impose restrictions. That is not the way to go about it,8221; PTI quoted Sinha.

He was reacting to US charge d8217;affaires Robert Blake8217;s comments that 8216;8216;way for India to counter efforts to restrict outsourcing in the US and other countries is to continue to open its markets so that jobs are created in the US.8217;8217;

With new US ambassador Robert Mulford arriving in India later this week and the US trade representative Robert Zoellick coming February-end, the controversy over the proposed US ban on outsourcing jobs is likely to be on top of the Indo-US agenda.

Blake was not available for comment but US embassy sources told The Indian Express that they were 8220;sure of clearing any misunderstanding with our Indian friends.8217;8217;

At the press conference, Blake made it clear that the US was not seeking any quid pro quo from India, but said 8216;8216;greater balance and greater liberalisation8217;8217; on India8217;s part would ensure US investors have as many opportunities here as Indians do there.

8216;8216;8230;The commitment to and benefits of trade must be reciprocal,8217;8217; the US diplomat said, adding, 8216;8216;the most important step India can take to counter efforts is to continue to open its markets.8217;8217;

Story continues below this ad

Blake pointed at India as a 8216;8216;global player on the economic front,8217;8217; and that it was a hallmark of maturity on the part of the two nations to be able to manage their differences.

But Sinha remained unmoved. 8216;8216;The US has to realise that by outsourcing, the companies manage to remain competitive. It saves some jobs. If they don8217;t outsource, they risk becoming not competitive 8230;This is where they have to realise their own interest.8217;8217;