India to resolve IT trade barriers through talks at WTO

Tuesday, 09 December 2003, 20:30 IST
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NEW DELHI: Accusing some countries of putting roadblocks in the way of export of services of the IT industry, the Indian government said Tuesday it was hopeful of resolving all issues through the World Trade Organisation (WTO). "Feedback from industry sources revealed that there are numerous barriers imposed by various countries on the free flow of IT services," said S.B. Mookherjee, the minister of state for commerce and industry. "We are trying, through the negotiations at WTO, to create an even more conducive environment for the export of services by the Indian IT sector," he told an IT industry seminar here. According to the minister, the barriers put up by some countries against export of IT services from India include delays in processing of visa applications and imposition of residency requirements. Regulatory measures in the guise of lack of transparency and non-recognition of Indian educational qualifications also come in the way of IT exports from India, said Mookherjee. "We have taken up each of these issues while making requests to our trading partners for greater market access," he added. India's vast pool of English-speaking, cheap manpower, educational system and training programmes have helped transform the country into a global business process outsourcing (BPO) superpower. The rapidly growing BPO industry has turned the country into an electronic housekeeper to the world, taking care of a host of routine activities for multinational giants. More than a quarter of Fortune 500 companies like General Electric, American Express, British Airways, HSBC and Citibank are shifting their back office operations to India. India is, however, now beginning to face a labour backlash in the West over outsourcing which unions argue results in large-scale job losses in their countries. The US state of Indiana last month dropped a $15.4 million outsourcing contract for IT services with an Indian software company. The move was part of an initiative launched by Governor Joe Kernan to protect local companies and jobs. "We have adopted a pro-active stance in the on-going negotiations on services at the WTO," said Mookherjee. "These negotiations, which commenced in January 2000, are aimed at achieving a progressively higher level of liberalisation in trade in services." The minister said that of the various service sectors in India, IT was arguably the most promising one with immense growth potential. "India is a recognized powerhouse in the IT and IT enabled service industry. We have already established ourselves in the fields of software development and allied activities as well as in back office operations," he said. "We are in a position of strength and this strength is dictating our negotiating posture on IT services at the WTO." He said India, with its considerable strength in services, would gain significantly from trade liberalisation. "Indian IT companies and professionals have proved themselves to be amongst the best in the world," said Mookherjee.
Source: IANS
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