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  • The Wrong Way to Deal With India

    Do as I say, don’t do as I do. This is the message the Obama Administration and Congress are sending to fellow democracy India. While correctly pressing India to liberalize trade and investment, President Obama continues to hector India on outsourcing, and Congress has now transformed the talk into ugly action.

    Last week, the President continued his portrayal of India as trying to take American jobs. A few days later, the Senate passed legislation requiring companies that hire a large number of high-skilled foreign workers to pay thousands more in fees for each one. This was intended to target certain Indian companies by constraining American access to them. Never mind that access to global markets makes America more competitive and ultimately creates more jobs and more wealth. This President and Congress are going with a simplistic—even patronizing—zero-sum argument that it’s either them or us.

    And as usual, when they have nothing to offer on an issue, they turn to blame someone else.

    To be sure, India’s own trade and investment policies are far from ideal and the U.S. has plenty of legitimate criticisms to level at New Delhi. But India is a consumer-oriented economy running a large trade deficit, not an export predator. There are strong reasons, in addition to the commercial ones, to engage more fully and equally with India, not punish it. Not only is it a democracy but also the U.S. and India have emerging and important strategic interests.

    The President wants to double exports to help our economy. In advocating restrictions on carbon emissions that will hurt our economy, the Obama Administration argues the world will not act unless America leads. In trade, though, the President and Congress set no example for the world to follow—quite the opposite in fact. The Administration resorts more and more to punitive trade and investment actions like trade duties and disincentives to invest, such as the visa fees directed at India.

    India is a rapidly growing economy driven by its consumers. It is an American friend. Picking on India, especially, tells the world that the U.S. commitment to open trade and investment is weakening, a message that will end up hurting both our foreign policy and our economy.

    Posted in International [slideshow_deploy]

    8 Responses to The Wrong Way to Deal With India

    1. Billie says:

      Sending the message obama does not want any country free to do for itself. For what purpose is this dictate besides to convince an illusion? For what reason does India have to comply?

    2. Pingback: The Wrong Way to Deal With India | The Foundry: Conservative … » India Chennai

    3. Ishaan Dang says:

      Excellent article, Mr. Derek. I totally agree with you.

    4. dan says:

      I totally agree with you Mr Derek. The whole issue is politicians misleading the general public. What I feel is US government has failed to create enough jobs to bring down the unemployment percentage, so it starts to point fingers at other countries , their companies saying that they are taking away our jobs. This is not true. Where are all the jobs in the construction sector, financial sector etc which were blown away during the recession. They were not outsourced to other countries. Only some jobs related to IT are being outsourced because, we cant find enough graduates in engineering. Its clearly obvious that not one of us with a bachelors degree or a masters degree in engineering is unemployed now. Then why point fingers at some other countries, which play by rules, helping us in our recovery , and blaming them for taking our jobs

    5. Fair Game says:

      India increased visa fee for Indian Americans/Persons of Indian origin (so called own ambassdors). The visa fee for 5 years Entry visa ( for former Indians) is double than visa fee for 10 years tourist visa( for foreigners).The reason given by Indian govt. is internal security (border control) and by Indian consulates is revenue.Indian govt and Indian consulates are discriminating their own people by refusing visa to visit their motherland and act like dictators. Why crying over these rules? Is it not typical Indian double character????

    6. Pingback: Quick Ways to Make Money – making an investment in the right place and Time | Making Money Fast

    7. gkumaran, India says:

      Well said. US Companies came to India for cost, they are staying here for quality and they are investing now for innovation. If you cut down the innovation, there goes the competitive edge to outwit in this struggling economy.

    8. Mohan Guruswamy, New Delhi says:

      You make your points, as usual, with clarity and tellingly. But the Obama Indian IT tax is now law. We at CPAS are advocating that India withdraw its interest in the C17 Super Galaxy cargo plane, for which President Obama personally lobbied with our Prime Minister in order to save 5000 jobs in Long Beach, California.

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