It seems Obama had false understanding about outsourcing. Obama was in the impression that outsourcing to the countries like India is the major reason for job losses in US.
Democrat Senator of New York Charles E Schumer had described Indian IT major Infosys as a "chop shop", a place where stolen cars are dismantled and parts sold separately.
It clearly indicates that how US is seeing outsourcing as negative for them.
The recent set back of Democrats in mid-term election also forced Obama to take solid steps to create more jobs in US.
So, Obama was very focused on creating more US jobs during his entire India visit.
Indian Prime Minister Manmohan Singh had told to Obama "India is not in the business of stealing jobs from the US... outsourcing (work to India) has helped improve the productive capacity and productivity of America,"
Obama might have understood that restricting outsourcing won't help to create new jobs in US.
Some analysis about outsourcing majors GE and IBM reveals some important facts which clearly indicate that outsourcing helped to create more jobs in US by expanding their market internationally using help of skilled employees in countries like India.
US is planning to create 54K jobs in US by creating below deals.
- Heavy Transport Aircraft
- Engine Sale for the Light Combat Aircraft
- Commercial Aircraft Sale
- Gas and Steam Turbine Sale
- Reliance Power and U.S. Ex-Im Bank Agreement
- Diesel Locomotive Manufacturing Venture
- Motorcycle Assembly Plant
- Sale of U.S. Mining Equipment and Related Support Equipment
- Tunneling Equipment for Underground Water Channel
- Maharashtra Homeland Security Pilot Projects
- Medanta Duke Research Institute (MDRI)
- Long-range Antenna System for Rural Telecommunications
- Production Equipment for the Manufacture of Pre-fabricated Housing
- Cell Phone Rollout for Small Indian Businesses
- The Unique Identification Project
- Sale of Precision Measurement Instruments for Fuel Cell Research
- Trace Explosive Detection Equipment
- VIP Helicopter Sale
- Sales of Pre-owned Refurbished Healthcare Equipment
- Monitoring Equipment for Greening Buildings
- Dredges for Maharashtra Maritime Board
Apart from this outsourcing issue and anti-terrorism initiatives, the United States and India on Monday signed below six agreements.
- India-US agreement to set up a joint Clean Energy Research and Development Centre to do research in solar, biofuels and energy efficiency
- Memorandum of Understanding (MOU) for a Global Centre for Nuclear Energy Partnership.
- MOU to establish an India-US Energy Cooperation Programme.
- Agreement on technical cooperation to study India's annual monsoon rains
- MOU between India and the US on shale gas resources
- MOU on establishing and operating a Global Disease Detection Centre in India to prevent the spread of infectious diseases.
If everything goes well, these deals may impact Stock Market in both US and India.
Do you think that these announcements and agreements will really help to improve Economic of both India and US? You can share your thoughts thro' the comments.
Will US get ROI for this costly visit?
Since Obama has declared that he will support India for getting permanent membership in UN security council, we can expect good political relationship between both countries. This political relationship may also impact the economic of both countries in positive manner.
Find below the joint statement of Indian Prime Minister Dr. Manmohan singh and US president Barack Obama. It will help us to understand the outcome of Obama's India visit.
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