Bangalore: The government plans to adopt the "China approach" to negotiate with the US for concessions to provide market access to American firms in India, Union IT and Communications Minister Arun Shourie said.

"India is a very important market for US companies. When China allows market access to US firms, they negotiate concession agreement for items of their interests... so should we," Shourie told reporters on June 16, when asked on how the government plans to tackle the outcry in the US and Europe against outsourcing of IT work from India.

Stating that there was absolutely no need to panic, Shourie said the proposed Bills against outsourcing had not been passed.

He said Indian Embassies abroad were in touch with the legislators and efforts were being made to educate them on the benefits of outsourcing from the country.

"It is also that US firms that benefit from outsourcing to India should publicise the benefit accrued," Shourie said.

"If that access (outsourcing) is denied to them, then they will become uncompetitive vis-a-vis German firms," he said.

Shourie interacted with IT industry leaders and discussed on removing irritants for the industry. He also asked IT leaders to collectively join the government to project India as an ideal investment destination, both for software and hardware.

PTI