Outsourcing has created many U.S. jobs
Friday, 05 November 2010, 05:59 IST   |    17 Comments
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Outsourcing has created many U.S. jobs
New Delhi: India will seek to impress upon U.S. President Barack Obama during his Nov 6-9 visit that outsourcing has actually created thousands of jobs in the U.S., and not taken them away. "The issue of outsourcing will obviously figure in the discussions," Foreign Secretary Nirupama Rao told reporters here, briefing on the contours of the US president's visit, while touching upon what has been a sensitive issue for the two sides. "Recent studies by FICCI (Federation of Indian Chambers of Commerce and Industry) have shown that thousands of jobs have been created by our greenfield partnerships," said Rao, referring to the growing operations of Indian companies in the U.S. She said while the U.S. was the third largest investor in India with a cumulative inward investment of nearly $9 billion since 2000, India was also was contributing much toward the American economy. "According to the U.S. officials, India is the fastest growing source of foreign direct investment in the US. They are creating, saving or supporting tens of thousands of jobs in the U.S.," the foreign secretary said. "India's defence acquisitions and major purchases in energy and aviation sectors, for example, are contributing to the U.S. economy." As per the study by the leading industry lobby, quoted by the foreign secretary, Indians are not taking away jobs in the U.S. but had created and saved 65,000 jobs in recent years through increased investments. "Recent Indian acquisitions have created and saved 65,000 jobs in the U.S. A total of 374 acquisitions have been made and 127 greenfield projects have been set up in the US by Indian investors," FICCI secretary general Amit Mitra said Wednesday. India's Ambassador to U.S. Meera Shankar, who was also at the event Wednesday, said Indian companies invested $5.5 billion in U.S. greenfield projects from 2004-09. "In mergers and acquisitions of U.S. companies, Indian companies invested $20 billion." Mitra said one area of outsourcing shouldn't be seen as a fulcrum of Indo-US engagement. "The relation need to be judged in its totality just as some European nations have begun to look at their engagement with India." Obama, accompanied by a large delegation of over 200 corporate honchos, arrives in Mumbai this weekend on an official visit to India. Both sides acknowledged that business will be on top of the president's agenda during the visit.
Source: IANS
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