India to raise outsourcing ban and related issues in TPF

The sharp rise in US work visa fee for IT professionals as also the state of Ohio imposing a ban on outsourcing are expected to figure among the more prominent issues that will be discussed in a key India-US trade dialogue in New Delhi ahead of president Barack Obama's visit to India.

While both sides will choose to somewhat play down the developments before the visit, India is likely to record its disappointment over recent "protectionist" tendencies in the US at the Trade Policy Forum (TPF) today co-chaired by India's commerce and industry minister Anand Sharma and US trade representative Ron Kirk.

In 2009-10 the bilateral trade between the two countries touched $36.5 billion with the US accounting for around 60 per cent of India's total $50 billion IT and IT enabled services exports.

Besides the hike in fees for certain H-IB and L1 visa categories which will raise $600 million for securing the US-Mexico border and the Ohio ban, India will also raise concerns over the 'Buy America' law requiring companies availing state incentives to source their requirements from the US itself.

Another issue like to come up for talks at India's instance is the early implantation of a proposed totalisation agreement with the US, under which professionals on short-term work visits to US would be exempted from payment of social security taxes.
The last TPF meeting was held in October 2009 in New Delhi.

India is also likely to raise the outsourcing issue at a meeting of the Private Sector Advisory Group (PSAG), created by the US and Indian governments to provide the TPF with independent counsel to help develop closer economic and commercial ties between the two countries.