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This is an archive article published on February 3, 2004

Outsourcing: US ‘advice’ 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...

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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 ‘‘retaliation’’ comments by US diplomats here that there existed a need for India to further open its markets.

‘‘It smacks of retaliation that if you don’t open up, we will impose restrictions. That is not the way to go about it,” PTI quoted Sinha.

He was reacting to US charge d’affaires Robert Blake’s comments that ‘‘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.’’

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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 “sure of clearing any misunderstanding with our Indian friends.’’

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

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

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Blake pointed at India as a ‘‘global player on the economic front,’’ 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. ‘‘The US has to realise that by outsourcing, the companies manage to remain competitive. It saves some jobs. If they don’t outsource, they risk becoming not competitive …This is where they have to realise their own interest.’’

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