The government on Monday told the Rajya Sabha that the United States has assured that it would not approve opposition to business outsourcing to countries like India brought in through legislations by New Jersey and some other states.
Replying to supplementaries during Question Hour, Commerce and Industries Minister Arun Jaitley said both the US government and the industry are in favour of continuing with outsourcing of jobs, of which India is a major beneficiary.
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Jaitley said during his talks with US trade representative in June, he was told that Washington totally disapproved of the legislations to curb business process outsourcing.
The minister said American companies too were fighting the issue and has contended that curtailing outsourcing could affect its profitability.
The minister said India is campaigning hard to ensure outsourcing jobs are not affected and the Indian missions abroad were assisting in these efforts.
He said it was being felt in some quarters in Europe and US that while manufacturing jobs were being cornered by China, the service jobs were being taken away by India.
Jaitley said there is no proposal by any country to curtail the World Trade Organisation regime for import of services.
In reply to a query on duties, he said Indian import tariffs were well below the WTO rates and reduction of peak rates of customs duties and duty rate rationalisation has been an integral part of India's economic reforms.
On bilateral trade with the US, Jaitley said in the first five months of 2003-04, India's merchandise exports were estimated at $5.47 billion as compared to $5.02 billion in the same period last year.
Jaitley said India has achieved a share of 1.02 per cent of total US merchandise imports in 2002 and was the 19th largest supplier to the US market.