HYDERABAD: In a word of reassurance to Indian IT companies, U.S. President George W. Bush on Friday said he firmly believed in competition and rejected "protectionism" against outsourcing of jobs.

Interacting with a select group of 16 young entrepreneurs at the sprawling Indian School of Business (ISB) campus here, Mr. Bush said, "I have taken a position. [The] U.S. will reject protectionism. We want competition. We welcome it." His observation favouring outsourcing came in for instant applause.

He was responding to a question asked by a software entrepreneur onwhat should be the Government policy and strategy on dealing with resistance over outsourcing and the effect of globalisation.

"Two ways"

Mr. Bush agreed that globalisation had resulted in people losing jobs. "Losing jobs from globalisation is painful. But the fundamental question is how the Government tackles it. There are two ways of doing it — take the route of protectionism or making sure that people get educated to take jobs of the 21st century." One should not forget that globalisation has also opened up opportunities.

Governments should aim at pushing economic growth through low taxes, less regulation, fewer lawsuits and wiser energy policies, he said. "That's the way to deal with it". As far as the U.S. was concerned, "we reject protectionism and will not pull back from competition."

Explaining why he was in the ISB, Mr. Bush said it was the centre of excellence in education. "It is a new school and has been using innovative technology and giving tools necessary to succeed." He addressed young entrepreneurs as "CEOs of tomorrow."

Mr. Bush spoke of making universities and colleges in the U.S. accessible to Indian students and said perception about the U.S. changed if one saw the country first hand.

Another entrepreneur, Raj R. Mishra, asked him if India could expect relaxation in restrictions on export of electronics, now that the nuclear deal has been struck. Mr. Bush said export control laws were constantly under review. "Yesterday's energy agreement is on strategic partnership was important for U.S. and India. It helps in meeting the rising energy demand. In fact U.S., China and India should merge technologies. Nuclear energy is a clean source of energy."

To Amar Ohri's query on why India had suddenly become an important country for the U.S, he said India had always been important for the U.S. "But the Cold War has put countries in different groups and placed walls. U.S. President and Prime Ministers of other countries could not meet so often. We should put behind the Cold War now and move ahead."

He said India could be a major economic power and the U.S. business was looking at the 300-million strong Indian middle class "larger than that in [the] U.S.," as a potential market.

U.S. Secretary of State Condoleezza Rice and U.S. Ambassador to India David C. Mulford were present.

Printer friendly page  
Send this article to Friends by E-Mail