Washington: The US-India Political Action Committee (USINPAC), a lobby of Indian-Americans, which seeks to bring India and the United States closer, yesterday (Jan 28, 2004) urged fellow Americans to keep their faith in the free market they espouse and not to undermine it by curbs on outsourcing.

"USINPAC today called on all parties involved in the outsourcing debate to have faith in the principles of a free market - the very standard that has made American business the growth engine of the global economy," it said in a statement.

Referring to the Appropriations Bill passed by Senate on January 23 limiting outsourcing by agencies receiving federal funding, the USINPAC said, "The political dynamics of an election year, slow growth in employment, and the continuing slide of the Dollar all contributed to the passage of this ill-considered legislation.

"Nevertheless, USINPAC has faith in the enduring values that are the foundation of the America's free-market economy - including access to the best goods and services at the most competitive prices," it said, adding that "The USINPAC also has faith that Congress will transcend political expediency and act for the common good."

"Like USINPAC, the American business community is committed to the emerging global economy," Tita Freeman, director of communications for the business roundtable, notes. "We want to grow the worldwide economy and create jobs. Isolating ourselves is not the way to do it."

"If approved (if it becomes law), the specific impact of this legislation on Indian-American business is expected to be minimal, while the impact on Indian companies is anticipated to be in the two to three per cent range," the USINPAC said.

Sanjay Puri, USINPAC executive director said, "Though the signals are worrisome, yet the immediate impact is expected to be minimal. USINPAC has been working steadily to mitigate outsourcing concerns through alternative models of trade promotion."