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Actions against Outsourcing: Missing the Wood for the Trees

The related issues of H1B visas and outsourcing have once again come to the fore and could prove to be a troublesome issue in India-US relations. In his address to the Joint Houses of Congress on February 24, 2009, President Obama declared that he would nullify tax benefits for American companies that outsourced their services. The same day, the US Citizenship & Immigration Service (USCIS) released data showing that four Indian outsourcing companies, Infosys, Wipro, Satyam, and TCS, accounted for more than 10,000 of the 65,000 H-1B visas issued by the US in 2008.

China’s Naval Force Projection off Somalia

Call it China’s new military diplomacy or emerging naval strategy. A Chinese naval fleet arrived in the Gulf of Aden off the Somalian coast on January 6, 2009 to carry out the first escort mission against pirates. On February 18, 2009, in an efficient display of its growing naval capabilities, the fleet completed its twenty first mission (the largest held so far in the series) of escorting merchant ships in this region.

India’s Defence Offset Policy

Although India has established a formal mechanism for implementation of the defence offset policy, the structure and procedures lack the thrust to fulfil the objective of energizing the Indian defence industry. Besides, the policy is not supported by the existing Foreign Direct Investment (FDI) and licensing policies. While evidence suggests that domestic industry can absorb offsets, what India needs is an effective body to handle offsets, liberal FDI and licensing policies, and a better banking provision.