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Now Obama urges US businesses to feed on Indian Middle-class Population!

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Well, you can say it’s almost an about-turn! The US President Barack Obama has come up with a view which now urges US business groups to target burgeoning middle-class population of India and China to seek demand for their products and accessories.

In order to not sound too apprehensive over here, I would take pleasure to say – you’re welcome to our shores, Mr. Obama! But, for once, I would also like to pose a query: doesn’t your thought sound dichromatic in nature?

No please, let me refrain from number crunching over here! We’re not here to debate whether or not Indians have replaced American job opportunities. We all know how the President has been more than vocal about Indians taking away American jobs.

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Moreover, he has left no stone unfurled in a bid to curtail the practice of outsourcing jobs to India. So much so that the country which preached the world about the benefits of free-trade, took a cover under the protectionist measures such as creating tougher tax codes to discourage more value-added savings from outsourcing job contracts.

The President Barack Obama presides to its business community saying:

The truth is, as countries like China and India grow and develop larger middle classes, it’s profitable for global companies to aggressively pursue these markets and, at times, to set up facilities in these countries

Further, he admits that the country has signed export deals with two of the most powerful emerging market economies that will tend to support over 2.5 lakh jobs in the US. But, at the same time, as if he is warning the outer world – not to rule out the creative spirit and entrepreneurial ability of the United States to overcome the on-going economic crisis.

He also insisted for greater investment in education and technology in a bid to provide impetus to innovation-led business models seeking new opportunities and opening new markets for goods.

In a nutshell, what irks me is the dichromatic thought process emanated by Obama – at first, against anti-India outsourcing view; and now, directing US entrepreneurs to target the very same India and China to tap the growing demand from their middle-class population.

A simple point narrated over here being – not to challenge the ethics or the message given out by Obama; he is perfectly fine in what he said. I just seek to pin-point that if you’re openly advocating business opportunities from overseas, please feel equally free to tone-down your anti-outsourcing slogans as well.

Am I asking for a bit too much – what’s your say?

  1. Vikram says

    Why should we expect the American president to be fair to India/ Indians ? He could be anti outsourcing and pro american business at the same time since he perceives that to benefit the american population most. Self interest is paramount to all countries. If we are confident that in a free market outsourcing and imports to the Indian market can benefit us and them at the same time the sheer irrefutable economics itself will ensure such an situation. there is no need for rhetoric from either side. jai ho

  2. Madhav Shivpuri says

    Viral and Altaf, good points.

    Saving money is capitalism aka. Wallstreet. That’s what the shareholders want.
    “Stop outsourcing” – that’s what the voters want to hear.

    Come to think of it, outsourcing is everywhere.
    1. Selling books thru Amazon.com instead of book stores. Amazon takes a cut for being the salesman.
    2. Getting projects done on elance.com. Work outsourced to people in US and abroad.
    3. Eating breakfast or snacks at McDonalds- mothers and wives outsourced cooking to fast foods and restaurants.
    4. Watching Disney channel. Parents outsourced entertaining kids (story reading and play time) to Disney.

    The list goes on… :-)

    1. Viral says

      Madhav,

      Nice to hear from you after a long time, gentleman. As you’ve pointed out, outsourcing has gradually become deep-rooted in our system sourced from places that best suit to us, even in small routine activities that we do in our daily lives.

      So, without any question being raised, in business activities – where it is a matter of savings – people have all the more tendency to tilt towards low-cost outsourcing job-works. Nothing wrong in that. Can we ask a youngster to stop eating at McDonalds? No! So, It’s on that lines; but on a macro basis.

  3. liju philip says

    Obama proves that no matter the rhetoric, when you come to power, you have to play politics.

    Am not surprised. He is just a politician like the ones we have in India. Say something and then do something else.

  4. Altaf Rahman says

    The point Obama (and even Indian leaders are missing to high light whn he came crying to India) is the cost savings Indians created for US.

    There are two issues here. Let me explain. Suppose if US never outsourced IT work to India, the business community there would have spent 500 billion USD on IT related work. Now the same work US Businessmen have outsourced to Indian IT industry for 100 billion USD. In this deal two things happened. US business community saved 400 billion USD and in the process, sacked lets say a million employees.

    Now US is conviniently hiding the fact that we saved them 400 billion USD in reduced cost. But it is crying that we took away a million jobs. Indian leaders could have highlighted this fact to Obama during his visit. They also did not do it. Why? They have no vision.

    Obviously Indian IT industry never put a gun to US head and snached their jobs. In a free market economy, US Business saw the benifits and decided to go Indian way. So if Obama has to cry and complain, he has to do it to US business community. Why is he crying to India?

    Now Obama increase taxes, barriers to Indian products, I have no complaints. Its his country, he is the head of the state, he knows his priorities. He can do what ever he want in his country.

    The question is what we are doing to counter this economic terrorism? Look at China !! Back in late 80s and early 90s, US threatened China with trade ban. US said, if trade is banned, China will loose 10 million jobs. China coolly explained to US the reality. They said, OK if you stop trade with us, we will loose 10 million jobs. We are prepared. But you will also loose 1 million jobs. Are you prepared to loose 1 million jobs? US pissed in its pants and backed off. China marched on with out a bother.

    Now !! Do we have such leadership? Do our leaders have such vision? If US threaghten us, what do we have to retaliate with? We have to see what US depend on us most for. And tell them, we will do this and that. For example, US want Indian to stop exporting Petrol to Iran to stiffle it. We have completely stopped our petrol export to Iran to please US even though we are loosing business opportunity. Now tell them, if you create barriers, we will increase our trade with Iran. US want India to stop trading with Sudan, though there is huge market. Sudan can pay us with its cheap oil for every thing we export from nuts and bolts to cloths, medicines, food, cars. We are pleasing US. Now tell them we will start doing business with Sudan.

    There is give and take for every deal. If US want to save its jobs, it has to hire expensive US IT professionals. But US want cheap IT services, but it do not want the jobs to go to India. They can not have it both ways !!

    But our leadership is all out to please the world police. Our President even allows US airport staff to frisk them (inspite of diplomatic protocals) with out even protest. It is not a one off stray incident. Even farmer president Abul Kalam also was frisked by US airport staff. How dare they touch Indian Head of state? On the contrary, when Obama visited India, Indian security personnel were kicked out of the airports, Hotels, places of meetings and its sorrounding areas in our own country. See the partiality?

    Why?

    “FOR A FEW DOLLARS MORE”

    Just my two paisa :)

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