The Hindu : Front Page : India warns against curbs on IT sector

Online edition of India's National Newspaper
Thursday, May 17, 2007
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India warns against curbs on IT sector

Sandeep Dikshit

It will affect WTO negotiations: Kamal Nath

NEW DELHI: India has "warned" the United States of an adverse impact on World Trade Organisation negotiations if it makes any attempt to restrict the movement of skilled professionals of Indian information technology companies.

In a message aimed at assuring the nervous IT industry, the Government made it clear that a breakthrough in the deadlocked WTO talks hinged on a more liberal regime governing the movement of professionals.

"The U.S. move on utilisation of the special H-1B visa by IT companies restricting the movement of skilled professionals would have an adverse impact on the rapidly expanding services trade," Commerce Minister Kamal Nath said in a statement.

He will raise this issue with U.S. Trade Representative Susan Schwab at the G-4 (India, Brazil, U.S. and the European Union) meeting called to end the impasse in WTO talks.

Mr. Nath is leaving for the meeting in Brussels on Thursday.

"I am surprised at both the form and content of the letter [by two U.S. Senators]. Issues such as work visas are inter-governmental in nature and should be dealt with accordingly. Temporary movement of skilled professionals is an essential component of the global services economy and bears no relation to immigration issues. Any move which creates uncertainty and unpredictability about such movements will naturally have an adverse impact on the rapidly expanding services trade," Mr. Nath observed.

Response to letter

This is the Government's first response to the letter written by Senators Charles Grassley and Richard Durbin seeking information from at least nine major Indian companies about utilisation of special H-1B visas.

They have sought information about the workforce of companies such as Infosys, Satyam, Tata Consultancy Services and Patni Computers as they feel the Indian companies are misusing the visas to displace qualified American workers.

Mr. Nath said India would be extremely concerned if the U.S. limited the movement of professionals at a time when both countries were discussing further liberalisation of their visa regimes.

"In previous discussions with Ms. Schwab, I have informed [her] that while India continues to liberalise its services economy, it expects at least equal movement from important trading partners like the U.S. in areas of our interest, he said. Unless we see forward movement in such areas, it will be difficult for India to enhance its commitments in the services negotiations,'' he cautioned.

"Services are an important component of the breakthrough in the current WTO negotiations and any move which vitiates the current progress will only frustrate the progress in bringing the round to a successful completion." India would not subscribe to any WTO conclusion without a satisfactory outcome in services.

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