And Now Obama Goes Job Hunting To India!

There has been a lot of speculation on ATS as to what Obama’s main purpose of his visit to India is. Some have asked why India of all places?

Well, the answer to that question is – American jobs! According to the Labor Department, while job levels have improved considerably over the summer, layoffs in the public sector have led to huge job losses. October’s job increases were clearly not enough to draw down the unemployment rate from 9.6%.

Enter India into the calculus – the second fastest growing economy in the world after China, with a growth rate of nearly 9% (Compared to an almost negative American growth rate) and third fastest growing investor in the US.

As is commonly misinterpreted, Indians are not taking away jobs in the US, instead they have created and saved more than 65,000 jobs in the recent years through increased investments.

The joint study also found Indian companies had made 372 acquisitions in America worth $21 billion in the US between 2004 and 2009 and created an estimated 65,000 jobs in the country.
The Federation of Indian Chambers of Commerce and Industry (FICCI) secretary general, Amit Mitra noted that Indian companies made 127 green field investments worth $5.5 billion in the US. “So these are huge numbers that India is contributing to the US economy.”

And what is the US of A (read Obama) doing in return for India? Why is Obama paranoid about outsourcing services to India? Why is he scared of competition?

Barack Obama’s outsourcing policy means that there would be no tax breaks to US companies that outsource their jobs abroad. The Obama policy is not good for the Indian outsourcing companies. His statement has ruffled the Indian outsourcing industry, as well as the American outsourcing companies that are alarmed and hurt by his statement. Nearly 70 per cent of Indian software exports of close to US$40 billion are destined for the US market and of this a hefty 40 per cent are used by the US financial firms that are currently in deep trouble.

Andrew Kokes, vice-president for marketing at Sitel, a Nashville-based outsourcing firm with 4,000 employees in India says that if the U.S. proposes a punitive tax on companies doing work offshore or offers a tax break for those that do not, the changes wouldn't be large enough to offset the 20% to 30% benefit companies get in lower labor costs when they do certain work offshore. "A tax break can't compete with that kind of arbitrage," says Kokes.

So is Obama barking up the wrong tree when he talks of employment generation in America by discouraging outsourcing to India? Be that as it may, he’s on a trip for basically three reasons:

> Opening up Indian markets to American goods and more Indian investment in America for creation of jobs.

> Advancing the strategic partnership with India as a hedge against a rising and aggressive China.

> Sale of big ticket defense items to India worth more than $25 billion (which needless to say would help create thousands of jobs in America).

Some of the proposed military sales to India:


C-130J
Courtesy: Aviation News


C-17 Globemaster
Wikimedia


F-18 Super Hornet
Courtesy: Aviation News


Boeing P‑8i Long Range Maritime Reconnaissance Patrol Aircraft
Courtesy: Aviation News


M777 Light weight Howitzer that fires the M982 Excalibur GPS-guided shell with accuracy on target to within 10 meters at a range of 42 km.
Courtesy: DID

There are many more big ticket items but more of that later.






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chicagoindiepress.com...

So, the primary reason for Obama's trip to India is to create jobs for the Americans? So, basically it's a sales call with the main objective of securing American labor, for India?

So, now we're going to be India's call center?

Damn, I knew I should have taken Hindi or Kasmiri (in lieu of Spanish) in school!

I agree with the OP.
Obama is only doing what Britain and France have recently done before him. France has already secured a multibillion pound deal with China.

I can't see anything wrong with trying to boost the economy by trading with India. Having a job is a nice feeling.

Yep! Are you aware that accompanying Obama are more than 200 CEOs from the who's who of American business? Here are some...

Jeff Immelt, chairman and CEO, GE, Terry McGraw, chairman and CEO, The McGraw Hill Companies, Indra Nooyi, president and CEO, PepsiCo, W James (Jim) McNerney, Jr, chairman of the board, president and CEO, Boeing Company, David M Cote, chairman and CEO of Honeywell, Louis Chenevert, chairman and CEO of United Technologies Corporation, William Cohen, chairman, The Cohen Group, Nelson Cunningham, managing partner and co-founder, McLarty Associates, Frank G Wisner, foreign affairs adviser, Patton Boggs LLP, Paul Hanrahan, president and CEO, AES Corporation and Alex Karp, co-founder and CEO of Palantir Technologies, Louis Chenevert, CEO of aerospace major United Technologies, Ellen Kullman, chief executive of chemicals giant DuPont, Andrew Liveris, Chairman, CEO and President of The Dow Chemical Company and so on.

The Indian Finance Minister Pranab Mukherjee told the CEOs in June that "India offers investment opportunities in excess of $850 billion over the next five years" with an envisaged investment of $1 trillion in the infrastructure sector.

Wow! That's a lot of money that could translate to jobs in America!

reply to post by OrionHunterX

His statement has ruffled the Indian outsourcing industry, as well as the American outsourcing companies that are alarmed and hurt by his statement. Nearly 70 per cent of Indian software exports of close to US$40 billion are destined for the US market and of this a hefty 40 per cent are used by the US financial firms that are currently in deep trouble.

Sorry I had to laugh.. "US financial firms that are currently in deep trouble."
Are these the same firms recording record profits and dishing out insane bonus $'s ?

Your post seems to centre on sales of weapons..To me that just seems like more profits to the US war machine..And mates of Gov..

Any jobs there for the average Joe trying to pay off his house and feed his family?

Originally posted by backinblack
reply to post by OrionHunterX

 

Any jobs there for the average Joe trying to pay off his house and feed his family?

There would be as approx 100,000 jobs would be created for every $10 Billion worth of purchases from India!

That's a lot of cash to be gambling with.

If this works out and jobs are created, I'll give kudos to Obama for a change.
If not, then it's business as usual.

If this works out, and at 200 million bucks a day, how soon before we break even?