Why should Americans be angry at Indians and offshoring?

Fear and loathing are on the rise in the U.S. as a fall-out of the deepening recession and resultant job-losses. Moreover, India is now at a great risk of being roughly treated by the U.S. policy makers as protectionism is starting to rule the U.S., writes Steve Hamm in BusinessWeek.

But any anger on Indians would be unwarranted. The author takes stats from the Bureau of Labor Statistics to show U.S. employment in the category of computer systems design and related services to be at 1.463 million in February - down just 5,000 from a peak of 1.468 million last November. Though this is the category of employees that would be most affected by IT offshoring, the figure is just below an all-time high - and at a time when Wall Street has fired thousands of techies because of its own mistakes, not anything the Indian tech industry has done.

Another story which adds heft to this argument is an initiative by Nasscom, the Indian software and service trade association, to get McKinsey & Co. during the last recession to do an analysis of the impact of Indian outsourcing on the U.S. economy and jobs. The results showed a positive impact - more jobs created. The argument is that by making American companies more efficient, offshoring makes it possible for them to grow and hire additional employees. There's logic to that, but, since the Indians hired McKinsey to do the study, the conclusions aren't as credible as they would be if the study was independent.

However, the U.S. Senators Richard Durbin and Chuck Grassley are crafting new legislation aimed at further tightening H1B and L1 visa rules, which is expected to be submitted to Congress by April 3. Visa reform becomes dangerous if the legislation ignites an angry broad-based backlash against India and offshoring.

Though a measured dose of protectionism can be useful at times of crisis or in response to abuses by other nations, it's not good if it erects major barriers to trade. It could harm both nations if the U.S. goes after India. 

Nandan Nilekani, co-chairman of India's Infosys, while promoting his latest book 'Imagining India' in New York said, "Unlike China, India does not have a trade surplus. It needs to export more if it is to keep GDP at a healthy rate. It also needs to continue to grow at a healthy rate or risk an uprising by people left out of the tech-led boom." Concerning the potential for U.S. visa restrictions, he said, "Trade is a two-way street. We need to keep the movement of people open."

That is a key point. Trade is not just about merchandise. It is about labor and capital, as well. And if American pundits and policymakers fail to realize that, trade between the U.S. and India will be neither free nor fair.

References by the author: a New York Times report, an analysis from economist and author Paul Collier's book, The Bottom Billion: Why the Poorest Countries Are Failing and What Can Be Done About It. 

China poses strategic challenges to India

During the five years of UPA rule Indian foreign policy has remained directionless and in the absence of a comprehensive strategy based on national consensus, India's strategic and diplomatic interests are in jeopardy.

India needs a consistent, holistic and country specific approach to its foreign policy. While engaging with countries like China India needs to be doubly cautious because of its expansionist and aggressive agenda.

India's neighbouring country China has been posing new strategic challenges to India for the past three-four years. According to media reports China has developed the Irrawaddy corridor involving road, river, and rail links from Yunnan Province up to the Burmese ports on the Bay of Bengal.

The Irrawaddy corridor has brought Chinese security personnel to Burmese sites close to India's eastern strategic installations. With the Irrawaddy corridor stretching to the Bay of Bengal, Chinese security agencies have strategically positioned security forces at key Burmese coastal Centre, including the Chinese-built harbors at Kyaukpyu and Thilawa.

These security agencies already operate one of the most advanced signals intelligence (SIGINT) collection facility on the Coco Islands in the Bay of Bengal and gather sensitive electronic intelligence data.

China is also coming up with an east-west strategic corridor in Tibet across India's northern frontiers. It began with China-Tibet railway from Gormu to Lhasa that opened in July 2006. Now China is stretching the Tibetan railway link facility to Katmandu and also connecting it to two other points: the tri-junction of the India-Bhutan-Tibet frontiers (in the Chumbi Valley) and the intersection of the India-Burma-Tibet borders.

China has already taken big strides in its effort to build a north-south trans-Karakoram strategic corridor connecting Pakistan's new, Chinese-built Gwadar port to strategic installations in the eastern China.

By connecting the Karakoram Highway to Gwadar( Pakistan) and Yunan to Irrawady corridor ( Myanmar) China has increased its strategic strength and presence on both sides of the Indian peninsula.

China has also engaged Bangladesh and signed a military cooperation treaty with it. This treaty helps China to bring Bangladesh into its strategic ring, provides access to the port of Chittagong which connects with Myanmar through sea route and it gives China proximity to the strategically important the Northeastern States of India.

The BJP shares the deep concern of the Indian Armed forces which have sounded alarm bells on several occasions at China's aims to gradually extend its strategic orbit. China has built nearly 60 warships in the recent past and its naval fleet of 860 vessels includes 60 submarines. China has recently deployed its new Jin-class nuclear submarines at Sanya, in Hainan province. Within the next 25 years, China could have more nuclear assets at sea than Russia.

Last year, the Chinese forces destroyed some Indian army bunkers at the Sikkim-Bhutan-Tibet tri-junction and even threatened to launch an operation to destroy stone demarcations in the Finger Area.

China has adamantly refused to acknowledge the Indian state of Arunachal Pradesh as part of India and even raised question marks over the Prime Minister's visit to the State last year in January. The Chinese Army has grown bold enough to launch regular cross-border incursions in India over the past few years. In year 2008 alone 213 incidents of Chinese army intrusions have been reported. But the UPA Government did nothing except admitting these incursions in Parliament.

Chinese troops have been moving in and out of Indian Territory because the incumbent Government at the Centre has failed to assert India's territorial claims.

Although China has expressed willingness to find a solution to the Sino-Indian boundary dispute yet it has become increasingly clear that unless it relinquishes its expansionist agenda any effort to resolve the border issue will not bear any fruit.

China has solved most of its border disputes with other neighbouring countries but it has been showing reluctance to take any concrete steps to find a solution to border disputes with India.

When Shri Atal Bihari Vajpayee led NDA Government was in power India had displayed its diplomatic acumen by resolving its long standing dispute with China over Sikkim. China had promised to make more progress in this direction but the NDA Government had to demit office in 2004.

On the other hand ever since the UPA Government came to power the Sino-Indian boundary talks became sluggish and even the issues which were earlier considered resolved started cropping up.

The BJP believes that the diplomatic efforts to resolve border disputes with China should be expedited so that there is a clear demarcation of the Line of Actual Control (LAC). India also needs to have a pragmatic China policy which recognises the strategic challenges facing the country.

Good Governance is key to prosperous Arunachal

The Bharatiya Janata Party firmly believes in providing good governance to the people of India and it stands committed to development. States like Arunachal Pradesh deserve Governments which have an unblemished track record on development.

Most of the problems in Arunachal Pradesh could be addressed by ushering in an era of development. Unfortunately successive Congress Governments both at the Centre and in Itanagar have failed to deliver on this front inspite of ruling the country and the State for more than five decades.

When Shri Atal Bihari Vajpayee led NDA Government was in power developing the North east was one of our top most priorities. The UPA Government has not matched its words with prompt action.

The Infrastructure and other basic amenities are completely missing in Arunachal Pardesh. No wonder there are media reports of people from Arunachal Pradesh crossing over to Chinese side looking for better opportunities.

Although the Government has announced an economic package for Arunachal Pradesh but it is insufficient for the people of the State who have been deprived of development for decades. The economic package is also hit by large scale corruption which has prevented the people to benefit from it and the Government has failed to ensure a smooth delivery mechanism. The BJP demands the Government to ensure that there is a system in place to implement the welfare Schemes.

Rajnath Singh has a go at Foreign Policy!

Rajnath Singh goes someway in countering his post-Malegaon misdeeds by releasing this very encouraging foreign policy statement (drafted by some member of the BJP Foreign Affairs Cell) on China's strategic threats and the importance of developing the North-East:

January 30, 2009 At Itanagar

China poses strategic challenges to India

During the five years of UPA rule Indian foreign policy has remained directionless and in the absence of a comprehensive strategy based on national consensus, India's strategic and diplomatic interests are in jeopardy.

India needs a consistent, holistic and country specific approach to its foreign policy. While engaging with countries like China India needs to be doubly cautious because of its expansionist and aggressive agenda.

India's neighbouring country China has been posing new strategic challenges to India for the past three-four years. According to media reports China has developed the Irrawaddy corridor involving road, river, and rail links from Yunnan Province up to the Burmese ports on the Bay of Bengal.

The Irrawaddy corridor has brought Chinese security personnel to Burmese sites close to India's eastern strategic installations. With the Irrawaddy corridor stretching to the Bay of Bengal, Chinese security agencies have strategically positioned security forces at key Burmese coastal Centre, including the Chinese-built harbors at Kyaukpyu and Thilawa.

These security agencies already operate one of the most advanced signals intelligence (SIGINT) collection facility on the Coco Islands in the Bay of Bengal and gather sensitive electronic intelligence data.

China is also coming up with an east-west strategic corridor in Tibet across India's northern frontiers. It began with China-Tibet railway from Gormu to Lhasa that opened in July 2006. Now China is stretching the Tibetan railway link facility to Katmandu and also connecting it to two other points: the tri-junction of the India-Bhutan-Tibet frontiers (in the Chumbi Valley) and the intersection of the India-Burma-Tibet borders.

China has already taken big strides in its effort to build a north-south trans-Karakoram strategic corridor connecting Pakistan's new, Chinese-built Gwadar port to strategic installations in the eastern China.

By connecting the Karakoram Highway to Gwadar( Pakistan) and Yunan to Irrawady corridor ( Myanmar) China has increased its strategic strength and presence on both sides of the Indian peninsula.

China has also engaged Bangladesh and signed a military cooperation treaty with it. This treaty helps China to bring Bangladesh into its strategic ring, provides access to the port of Chittagong which connects with Myanmar through sea route and it gives China proximity to the strategically important the Northeastern States of India.

The BJP shares the deep concern of the Indian Armed forces which have sounded alarm bells on several occasions at China's aims to gradually extend its strategic orbit. China has built nearly 60 warships in the recent past and its naval fleet of 860 vessels includes 60 submarines. China has recently deployed its new Jin-class nuclear submarines at Sanya, in Hainan province. Within the next 25 years, China could have more nuclear assets at sea than Russia.

Last year, the Chinese forces destroyed some Indian army bunkers at the Sikkim-Bhutan-Tibet tri-junction and even threatened to launch an operation to destroy stone demarcations in the Finger Area.

China has adamantly refused to acknowledge the Indian state of Arunachal Pradesh as part of India and even raised question marks over the Prime Minister's visit to the State last year in January. The Chinese Army has grown bold enough to launch regular cross-border incursions in India over the past few years. In year 2008 alone 213 incidents of Chinese army intrusions have been reported. But the UPA Government did nothing except admitting these incursions in Parliament.

Chinese troops have been moving in and out of Indian Territory because the incumbent Government at the Centre has failed to assert India's territorial claims.

Although China has expressed willingness to find a solution to the Sino-Indian boundary dispute yet it has become increasingly clear that unless it relinquishes its expansionist agenda any effort to resolve the border issue will not bear any fruit.

China has solved most of its border disputes with other neighbouring countries but it has been showing reluctance to take any concrete steps to find a solution to border disputes with India.

When Shri Atal Bihari Vajpayee led NDA Government was in power India had displayed its diplomatic acumen by resolving its long standing dispute with China over Sikkim. China had promised to make more progress in this direction but the NDA Government had to demit office in 2004.

On the other hand ever since the UPA Government came to power the Sino-Indian boundary talks became sluggish and even the issues which were earlier considered resolved started cropping up.

The BJP believes that the diplomatic efforts to resolve border disputes with China should be expedited so that there is a clear demarcation of the Line of Actual Control (LAC). India also needs to have a pragmatic China policy which recognises the strategic challenges facing the country.

Good Governance is key to prosperous Arunachal

The Bharatiya Janata Party firmly believes in providing good governance to the people of India and it stands committed to development. States like Arunachal Pradesh deserve Governments which have an unblemished track record on development.

Most of the problems in Arunachal Pradesh could be addressed by ushering in an era of development. Unfortunately successive Congress Governments both at the Centre and in Itanagar have failed to deliver on this front inspite of ruling the country and the State for more than five decades.

When Shri Atal Bihari Vajpayee led NDA Government was in power developing the North east was one of our top most priorities. The UPA Government has not matched its words with prompt action.

The Infrastructure and other basic amenities are completely missing in Arunachal Pardesh. No wonder there are media reports of people from Arunachal Pradesh crossing over to Chinese side looking for better opportunities.

Although the Government has announced an economic package for Arunachal Pradesh but it is insufficient for the people of the State who have been deprived of development for decades. The economic package is also hit by large scale corruption which has prevented the people to benefit from it and the Government has failed to ensure a smooth delivery mechanism. The BJP demands the Government to ensure that there is a system in place to implement the welfare Schemes.