India’s outsourcing companies, often blamed for stealing Main Street jobs want Americans to know. The American public that India is here to help the US, they along with the President Obama who arrives in India’s financial capital Mumbai are pains to reassure the American public. The relationship looks great, two big markets two democracies, growing trade. There is a creeping sense that it may not live up to the hype. The India emboldened by its growing economic importance, it is not playing by US rules and the US which has lashed out at India’s key outsourcing industry even as it funnels billion to its ally in the war on the terror. The India’s archrival Pakistan looks like l;less of a trend than a New Delhi might like.
By the Republican gains in the Congressional midterm elections. Most of the believe business can lead bilateral ties. The US India Business Council is the largest such as the delegation to ever accompany a president on a foreign visit. The President of six universities, including the Georetown and Duke are also set to come. They are seeking more than $10 billion in deals. On the track to hit $50 billion this fiscal year ending March, it has more than doubled since 2004 last fiscal year India’s $11 billion worth of investment in the US matched US investment in India for the first time ever.
The two countries signed a civil nuclear cooperation agreement in 2008. Through the deal, which allowed nuclear trade with the India, despite of its weapons programs and seemed to herald a new era of the cross continental commerce. It has not been that simple. The job creating power of India’s big, fast growing market is hampered by its restriction on the foreign access to the key sectors like the retail, finance, education and insurance. The multinationals are wary of the shapeshifting rules that seem to govern things like the taxes and the environmental permits in India. The large defense contracts that the headlines that wish list of the deals for the Obama’s visit come burdened with offsets and foreign investment caps.
During a bust, the American who accepted outsourcing of Information and back office functions in boom times a way to free up capital for job creation at home seem less certain of the strategy’s benefits. With the US unemployment at 9.6 percent, India’s putative role as a driver of a job insecurity has leaked into campaign rhetoric. To India and China helped the California Senate company that sends most of its jobs to India. Indian companies keep insisting, quietly that they are not really the problem.
REFERENCE:
http://www.foxnews.com/world/2010/11/04/india-tries-reassure-outsourcing-fears/
