New Delhi: Bavaria, a key German State, today (Feb 18, 2004) said that restrictions on outsourcing of services to India would be a "retrograde" step and would not be in conformity with the process of globalisation.

"Outsourcing can act as a bridge that can bring the economies closer. Restriction on outsourcing to India will be a retrograde step," Bavarian President Edmund Stoiber said at a press interaction with External Affairs Minister Yashwant Sinha after they held wide-ranging talks on issues of bilateral and international interest.

The remarks by the Bavarian leader come a day after European Commissioner for External Relation Chris Patten voiced similar views and observed that European Union had "no problem" with outsourcing to India.

The Bavarian leader, whose free German State is known for its high-technology industries and specialisation in the IT sector besides car manufacturing, sought greater trade ties with India while welcoming the economic liberalisation process which has opened major opportunities.

Stoiber also welcomed the ongoing Indo-Pak peace initiatives, which, he said, would help in furthering economic development in the region.

He also lauded the Indian democratic system that has helped resolve political and economic conflicts despite a population of over one billion.