Obama changes tune on Indian outsourcing

US President Barack Obama, who has been openly critical of offshoring to India, seems to have changed his tune during his state visit to that country.

What seems to have changed his mind is the signing of some major trade deals, worth about $15 billion, as an "important step in elevating India to one of the US' top trade partners. The US president said that the deals with India will create 50,000 jobs back home. The purchase of US cargo planes by India alone will create 22,000 jobs in America, he added.

Obama said both the US and India were "operating on stereotypes that have outlived their usefulness", adding "Whenever I'm asked about Indians taking away our jobs, I want to say, you know what? They've just created 50,000 jobs.

"US companies are creating jobs with tech in US and Indian businesses will take those technologies to expand growth and jobs in India and US," said Obama. "We agreed to keep working to reduce trade barriers and protectionism."

"As far as India is concerned, India is not in the business of stealing jobs from the US," said Indian Prime Minister Manmohan Singh. "The outsourcing industry, I believe, has helped to improve the productive capacity and productivity of American industries."

But the Nasscom Indian trade lobby group struck a more cautious note. "Now that in public they have accepted the fact that is is stereo type that exist, Obama himself said that he is going to work on changing those perception. Its is a positive development. But we will have to see how it translates on the ground," said Nasscom President Som Mittal.

Meanwhile the US has decided to ease control on exports of technology to India. "This is a manifestation of the growing trust and confidence in each other. We have also agreed on steps to expand our cooperation in space, nuclear and defense and other high-end sectors," said Singh.

"In my discussion with the (US) president, we have decided to accelerate the deepening of our ties and our work as equal partners to strengthen our relationship that will positively and decisively influence world peace, stability and progress," said the Indian prime minister.