Outsourcing Issue Part Of Global Economic Phenomena, Says Mulford

Mumbai, April 21 | Updated: Apr 22 2004, 05:30am hrs
The current outrage over the outsourcing issue is not just an Indo-US issue, rather it is a part of the global economic phenomenon. The US administration had come out strongly against moves to restrict outsourcing. In fact, the US currently has a $57 billion surplus in its service account.

The number of jobs outsourced to India stands at around 100,000-150,000 which is a small number but it lends itself to tremendous political appeal, according to United States ambassador to India David Mulford.

Reiterating what the US Chamber of Commerce president Thomas J Donohue said on Monday in Delhi, Dr Mulford added that it was a hot political issue in the US and obviously legislators were all fired up. There are strong economic incentives in outsourcing, he added.

India needs to remove equity limit on foreign investment in order to reduce poverty and accelerate Indias emergence as a world power. Without foreign capital investment both equity and debt, the countrys growth will lag and its infrastructure priority will remain unfulfilled, he added.

Dr Mulford was addressing a Ficci-American Chamber of Commerce meeting on US and India: Building Global Partnerships here on Tuesday.

Dr Mulford added that much more needed to be done in order to ensure that the capital flows coming from US remain a long-term phenomenon.