Nirupama Rao, India’s Ambassador to the U.S, gave critics of the India-U.S. relationship food for thought as she offered a spirited defence of the bilateral relationship, covering issues such as the outsourcing controversy, questions relating to the pace of economic reform and the prospects for sustained momentum in nuclear and defence collaboration.
In a speech for the Asia Society given at the Bank of America building penthouse on Thursday, symbolically overlooking the White House and U.S. Treasury, Ms. Rao sought to correct the view in some corners of Washington that the relationship with India was “oversold”. “Is this a deserving judgment?” she asked, adding “I will introduce the note of dissent.”
While U.S. President Barack Obama and his Republican contender in the November elections, Mitt Romney, have repeatedly traded barbs on outsourcing in the already-feverish pitch of election campaigning, some have argued that nations such as India have suffered collateral damage in this debate.
Addressing this question of job-creation, Ms. Rao said, “Our IT companies supported 280,000 jobs in the U.S. last year. The IT companies have invested more than 5 billion dollars in FDI through acquisitions and green-field projects.”
On the broader role of Indian companies in the U.S. economy, she noted that they were invested and operating in a large number of states of the U.S and were not only creating jobs and prosperity but also working closely with local communities. Specifically, she recalled a recent case that she had seen firsthand, of Tata Consulting Services’ operations near Cincinnati, Ohio, where the company was “employing largely Americans from the area”.
Ms. Rao also offered a rebuttal to those who questioned India’s capability to sustain momentum with economic reforms back home. Alluding to a recent interview by Mr. Obama, in which he worried about a deteriorating investment climate in India and said it was time to make difficult reforms, Ms. Rao said, “I am aware that questions or doubts are sometimes raised here about our pace of reforms or opening up.”
Admitting there was a need to revitalise business and investor sentiments and remove supply side bottlenecks, the Ambassador assured, “[The] government is continuing with its efforts to bring in further reforms in key sectors of economy, including FDI in multi-brand retail, insurance, power sectors.”
Dispelling some of the doubts expressed by “some American experts” about continuing prospects for bilateral cooperation in civil nuclear energy she cited Westinghouse’s recent announcement of a preliminary agreement with the Nuclear Power Corporation of India on setting up a nuclear power in Gujarat.
Defence
On defence cooperation, Ms. Rao remarked that in various reports decrying the U.S. failure to win the Medium Multi-Role Combat Aircraft deal, “There is no, or insufficient, acknowledgement of how our defence trade which was negligible a decade ago... is now worth over $9 billion”, and included purchases of C-130J Hercules aircraft.
Keywords: Ambassador to U.S., Nirupama Rao, Indo-U.S. relations, bilateral ties
While it may be true, that IT industries supported 280,000 jobs in the USA, the deeper question is the way it was achieved. US Corporations let go one IT position in US and created two IT positions in India. Some companies here in India, offer 1 guy free for every two billable resources! This created lots of jobs in India, while closing positions in the US. Over time, Indian shops made enough money, from US customers - meaning the money flowed from the US Soil/Banking System to Indian shops/banks. Prices in US crashed; allowing Indian shops to acquire/setup US companies easily. Easy L1 visa for Indian shops; And jobs for Americans. Win-Win on either side of the pond.
It is high time that indian IT companies think about ditching the US markets and try building IT governance infrastructure for the india much more than it has already.
Indian IT companies get nothing but brickbats from both the Democrats and the Republicans inspite of their obvious contribution to the economies of both US and India.
Arms manufacturers should be treated on par with Tobacco related industry, heavily taxed to the point of discouraging anthing more than a notional investment for bare minimum security concerns and further require statutory warning in all documents that all arms transactions directly or indirectly kill human beings across all nationality and is regressive to human evolution.
Arms trade between India and the US only benefit the war industry and and corrupts American polity with huge donations made by the arms manufacturers to both republican and democratic parties in the US.
Hence they corrupt the world through their influence and mindset. .
The USD 9 billion which India gifted the US are instead better invested in civilian job generating commercial projects in the US and India cutting across all industry verticals ensuring bilateral benefits and job creation in both the US and Indian economies.
This is the only lasting legacy we can strive for.
Ms Nirupama Rao is to be appreciated for her bold and straight-forward
rebuttal of the Leaders of USA fighting for the Presidency with remarks
against India and outsourcing of jobs.
Indian IT Professionals are toiling harder not just to earn money but to
revive the Indian economy.USA has been able to recover mainly due to the
backup provided by Indian technocrats.India is blessed with Human
Resource which makes it unique and though USA has got sound technological prowess,It is the Indian brain behind the scene.India is
always open for trade.
India sustains through its IT companies 280000 jobs in US and buys $9 billion worth of
defense equipment per year from it. What is there in it for the people of India? One doesn't
expect an answer from the government.
Please Email the Editor