India says US protectionism is regressive
India's trade minister lashed out at perceived protectionist moves by the US on Saturday, calling them "regressive" and saying they could delay economic recovery.
The statement by Trade Minister Anand Sharma came after the state of Ohio banned outsourcing back-office jobs to places such as India in an effort to boost domestic employment.
It also follows a recent US law raising visa fees for skilled workers, that will India says will hit its flagship outsourcing sector.
"We feel these are regressive measures," Sharma told reporters as he visited India's second-largest software exporter by sales, Infosys Technologies, in the southern city of Bangalore.
"The leading economy of the world -- the United State of America -- has to have more confidence to engage with the rest of the world," Sharma said in televised remarks.
Ohio state has banned sending abroad government information technology and back-office projects.
India said earlier in the week it would formally raise its concern over Ohio's ban on offshore outsourcing with the United States at a high-level trade meeting in Washington later this month.
New Delhi will also raise the issue of increased fees for skilled worker visas that will boost annual US visa costs for the outsourcing sector by 200-250 million dollars annually, according to industry estimates.
"Protectionist tendencies are unhealthy and negative, and lessons from the past make it abundantly clear they end up deepening the recession, they do not help in recovery of economies," Sharma said.
"Any mindset, which is isolationist and inward-looking ends up hurting the economies and societies," he said.
The US measures have come as the country seeks to combat unemployment, which is nearing 10 percent.
The row comes ahead of US President Barack Obama's visit to India in November.
(c) 2010 AFP
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Sep 12, 2010
Rank: 5 / 5 (1)
Yes of course they could delay economic recovery, in India. India needs to start producing something more than just services, like China is doing.
(After all we do not hear China complaining about this)
This makes me think of the two countries of engineers that were both on the bad side during WW2 (Japan & Germany). Although the industries of both of them got destroyed in that war, they both also rebuilt themselves very well after the war. Contrast this with countries that never were bombed but still have very little industry (and 80% of population in poverty).
But perhaps the reasons are in the 'drive'? Chinese work hard from early childhood to be the best they can (maybe one reason why India has not won a single gold medal in the Olympic games yet).
Sep 12, 2010
Rank: 1 / 5 (3)
Have those regulations changed?
Sep 12, 2010
Rank: 5 / 5 (3)
These two issues are different and disparate. It's like comparing Patent issues(like by Apple to Google) with recession.
Sep 12, 2010
Rank: 1 / 5 (4)
No, it is all about govt attempts to control markets, socialism.
Sep 12, 2010
Rank: 5 / 5 (2)
Marjon doesn't care, he's a sophist in all aspects without relent.
Sep 12, 2010
Rank: 1 / 5 (2)
I support open markets for products and labor.
Let Indians, Filipinos, Chinese and others who speak, read and write English compete for jobs and create businesses in the USA. Why should English illiterates from south of the border have preferences?
""Any mindset, which is isolationist and inward-looking ends up hurting the economies and societies," he said."
The USA once promoted this idea.
Sep 12, 2010
Rank: 5 / 5 (2)
Since the USA destroyed those factories - they helped to rebuild those factories and countries after WWII. The Marshall plan helped a lot, but money more.
BUT, the USA did not rebuild their own factories and steel mills and railroads and...they won't allow any new ones to be built "in someone's backyard", so they are sinking in the ability to produce anything but ideas.
India need not worry. Just wait.
Sep 12, 2010
Rank: 5 / 5 (1)
They suffered under theocratic caste systems, then under Anglican Christian rule. What timeline are you from?
Sep 12, 2010
Rank: 1 / 5 (2)
Other industries were subjected to such onerous regulation that innovation came to a near standstill. "
"The Industries Act of 1951 required all businesses to get a license from the government before they could launch, expand, or change their products.
http://reason.com...ndian-so
Regulations are GOOD for an economy and don't limit private property rights do they SH?
Sep 12, 2010
Rank: not rated yet
Sep 12, 2010
Rank: 1 / 5 (2)
Recall the tainted pet food from China? It was the American importers that were liable.
The Chinese govt executed a CEO and an independent quality company, NSF, has set up shop in China to test product safety.
The Japanese and others play the ban when they want to protect their rice or apple producers.
Market forces are much more effective and efficient than govt bans.
Sep 12, 2010
Rank: 3.4 / 5 (5)
However, it's not 'protectionist' when India gives priority treatment to Indian Nationals as opposed to foreigners applying for IT jobs in places like Bangalore.
It's not 'protectionist' when U.S. citizens apply for work visas in India, only to have the associated costs and stipulations for them change at any given moment with the current government in power.
It's not 'protectionist' when reapplying for visas within India, one must often pay the 'on the books' costs, plus the 'under the table' bribes, in order to grease the wheels so corrupt visa officials will do the jobs they are supposed to do 'legitimately' in the first place.
Huh.
It seems India excels at this 'isolationist and inward-looking' mentality par excellence.
Sep 13, 2010
Rank: 5 / 5 (2)
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last olympic , india won a gold medal in shooting :).
Sep 13, 2010
Rank: 4 / 5 (3)
Sep 13, 2010
Rank: 5 / 5 (1)
Want to read us the rest of that article and speak to the good and current influx of wealth due to those same measures or do you want to keep quote mining?
Sep 13, 2010
Rank: 1 / 5 (2)
Like what?
Sep 13, 2010
Rank: 1 / 5 (2)
"For one thing, more than 90 percent of its workforce is in the informal sector, largely untouched by the regulations perpetuated by the federal government in Delhi and the state and regional governments. "
{It is a coincidence this is where innovation occurred, unregulated sector?}
"It will take a continued commitment to open trade to achieve higher growth rates, and it’s still unknown whether India has the political commitment to stay the course."
http://reason.com...ndian-so
Sep 13, 2010
Rank: 1 / 5 (2)
All countries do.
It would be interesting if a free market country opened its borders to all. All who feel stifled in their home countries could emigrate to this place to work or start a business.
I suspect a significant number of best and brightest would leave weakening their home country's economy.
Would those countries slap on exit visas or try and compete?
Sep 20, 2010
Rank: not rated yet
You must realize that it is the accent that creates the problem in this case, and not the language. An average Indian customer will undoubtedly face the same problem when calling a US company. The Indian might even be well educated but again the difference/change in accent WILL create a problem.