The U.S Secretary of state has finished her trip to India but the Protectionist actions that U.S intends to take have not taken a back seat nor have the fears abated in India.
The trigger was President Obama’s by now famous statement in the U.S in May that the U.S has developed a tax code which when enforced will make companies pay lesser taxes if they create the facility in the U.S than in Bangalore.
A legislation is also under way and if Senators Chuck Grassley and Dick Durbin have their way then a number of restrictions will be placed on firms that need H1 B visas to deliver the services.
Hillary Clinton has tried to make light of the actions of the U.S as friendly competition and has only agreed to continue the talks by diverting the concerns of India saying that President Obama himself has stated that the U.S did not want to return to protectionism.
In the same breath Mrs Clinton has admitted that outsourcing is a concern with many business communities in the U.S.
It depends to be seen how the U.S will balance the concerns including that of the president with out disrupting the trade between both the countries.
The agreement the U.S has signed with India is being termed as High Technology Cooperation Dialog.
What ever concrete measures the U.S intends to take must have been ironed out and we have to wait for the word to emerge from U.S as to what the measures are.
