‘Ohio outsourcing ban is trade barrier’

NEW DELHI: Strongly reacting to the decision of the US State of Ohio to ban off-shoring of IT projects by government departments, India Inc has described the move as ‘discriminatory’ and ‘protectionist’.  

“At a time when companies from across the globe, including those from the US, are participating in government projects in India, Ohio State’s ban on offshoring by government departments would discriminate against Indian companies,” said Amit Mitra, Secretary General, FICCI.

The move comes ahead of the impending visit of US President Barack Obama to India in November. It also follows a controversial legislation (border security law) increasing H-1B and L1 visa fees, hitting India’s over $50 billion IT industry.

Only last week Union Commerce Secretary Rahul Khullar had: “Everybody( US and India) is looking for a reasonable way to have this matter (Visa issue) resolved amicably...Nobody wishes to have this festering as a wound especially because....there is president Barack Obama’s visit.”

Nasscom is leading a delegation to the US later this month and will be taking this up with relevant officials in the US,” the apex body of the IT and ITES industry said in New Delhi.

Nasscom said it would also seek support from Commerce and Industry Minister Anand Sharma, who is visiting the US later this month. Sharma is likely to take up the matter with the US Trade Representative and other senior officials.