Curbing outsourcing would be USA's loss: India

New Delhi: India has indicated that it may take the US to the World Trade Organisation if it discourages outsourcing of American business.

Commerce and Industry Minister Kamal Nath, in an interview to Network18, said the US cannot follow a “switch on and off” policy regarding trade and outsourcing. He cautioned that America had more to lose by outsourcing than India.

“I think that they just cannot, in the kind of export technology development we have in the service, have a switch on switch off (policy). There is a US industry which remains globally competitive by outsourcing to India,” said Nath.

“While they may saving 10 jobs, they may be losing 100. The US industry will have to first respond to this themselves whether it (outsourcing) is possible, practical and feasible,” he said.

US President Barack Obama on Wednesday announced his administration would end tax breaks for corporations that ship the US jobs overseas.

About 1,000 American firms, which have moved their jobs abroad, are expected to be affected by the proposed Obama move against outsourcing.