The Hindu : U.S. Congressman allays fears over outsourcing curbs

Online edition of India's National Newspaper
Thursday, May 29, 2003

Business

Business

U.S. Congressman allays fears over outsourcing curbs

By Our Special Correspondent

NEW DELHI MAY 28. The U.S. Congressman, Jay Inslee, today sought to downplay India's fears over the introduction of certain bills proposing to restrict outsourcing to India observing that they were "more of discussion pieces than legislative pieces.''

Speaking at a seminar organised by the Confederation of Indian Industry on " Globalisation and business process outsourcing,'' Mr. Inslee, a Democrat from Washington, declared that protectionism was unsustainable. In the context of the move by four American States planning to bring in legislation to place restriction on outsourcing of certain type of business processes to cut costs, he said "there are several stages of a legislation — after introduction, there are hearings, from where it goes to chambers where voting take place, then it goes to the executive for potential veto.''

"And I can tell you that none of these stages have come in Washington since the bill was introduced,'' he said.

Mr. Inslee, however, called for initiating dialogue and said there was a need to be observant towards the protectionist stand taken by certain quarters in the U.S. in the wake of growing insecurity after the September 11 terrorist strike and recession in the economy.

Counselling the governments to stay out of trade and refrain from creating trade barriers, Mr. Inslee said most destructive form of Government would frame policies prohibiting individuals working as a team.

"Not of all U.S. is of the opinion that such policies would help. We cannot hope to sell Microsoft products and Boeing airplanes here unless we give access to India and Indians,'' he said.

He was optimistic that soon the feeling of protectionism in the U.S. would be overwhelmed by sentiment of the growing need of joining India and tapping its market of manpower intellectual capital.

The Congressman emphasised that protectionism was a barrier to healthy trade between any countries. "Government legislations create artificial trade barriers across seas and is not favourable to productivity.''

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