New Delhi: Supporting outsourcing as an important and positive part of overall trade agenda, US Congressman David Dreier said on Wednesday (Apr 7, 2004) that while outsourcing had become a political issue in the US, factors such as economic growth and creation of new jobs there would end up lowering temperature.

Terming trade as currency of friendship, Dreier, however, said India, on its part, would also need to pursue higher degree of economic liberalisation, eliminate barriers, and allow and encourage greater foreign direct investment.

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"I know the question of outsourcing raises criticism from many people. But US has the same level of insourcing as they do outsourcing. Comparative advantage makes it clear that people are going to do what they do the best. I believe outsourcing is important and positive part of overall trade," Dreier told reporters after a Nasscom (National Association of Software and Service Companies) event in New Delhi.

Admitting that the issue of outsourcing was a political one, he said, "As more jobs are created in the US, that will end up lowering temperature on hue and cry on exporting jobs and outsourcing."

Observing that imports allowed consumers to have access to products, Dreier emphasised "If you want to benefit consumers of India, if you want to make sure that they have opportunity and access to best quality products at lowest price, then greater economic liberalisation, elimination of barriers, allowing and encouraging greater FDI (Foreign Direct Investment) are essential."

There were "protectionist forces" on both Republican and Democratic side, he said but added, "I am happy to say it is a small part of my political party (Republican)."