India says no to U.S. protectionist attitudes

Calcutta News.Net
Sunday 3rd June, 2007

A broad trade dispute is possible between the U.S. and India over how Indian outsourcing firms operate in the U.S.

In recent weeks, senators have investigated whether U.S. companies which outsource to India, such as Infosys Technologies and Wipro, should cut back on a U.S. program for temporary workers.

Indian authorities are annoyed with the probe, arguing that it undermines the principles of free trade.

They say, even though a high software and services output flows into the U.S., India buys a whole host of U.S. goods and services, including aircraft, wheat, branded garments and products from high-tech makers Hewlett-Packard Dell, Microsoft, Oracle and others.

The implication from India is that restrictions on foreign workers in the U.S. would be regarded as protectionist.

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