Ohio ban on offshore outsourcing not at all welcome: Sharma

New Delhi: India today said that several actions taken by the US with regard to offshore outsourcing and other trade issues are "not welcome at all", reports PTI.

"Indian IT industry has made a notable contribution which is acknowledged globally, even in the US. It is Indian entities, which are responsible for creating jobs, even now when there are big job losses," commerce and industry minister Anand Sharma told reporters here.

Hoping that the scheduled India-US Trade Policy Forum (TPF) meeting on 21st September would be "constructive", Mr Sharma said the many actions taken by the US that adversely impact the economic engagement "are not welcome".

Ohio governor Ted Strickland has banned offshore outsourcing by government departments. Earlier, the US increased professional visa fees significantly to fund a $600 million programme to secure its border with Mexico.

Mr Sharma and US trade representative Ron Kirk will co-chair the TPF, which is the principal trade dialogue between the US and India.

He said that data suggests that Indian IT companies have created over 2.5 lakh jobs in the US in the last three years.

"We hope that there will be a constructive and appropriate approach, because both the countries are strategic partners," he added.

He said the protectionist measures being resorted to by several developed countries after the 2008 economic meltdown would be counterproductive.

Mr Sharma said lessons should be learnt from a similar mistake in the form of the Smoot Hawley Act of 1930.

It is widely believed that because of that protectionist move by the US, the global recession during the 1930s changed into a depression.


Indian model of growth wins praise over its Chinese rival

Beijing: Indian economic growth, often described as chaotic and weighed down by poor infrastructure, came in for praise from experts here, compared to more disciplined but highly autocratic Chinese model, reports PTI.

While Indian economic growth was more fuelled by high domestic consumption and services, the Chinese model relied heavily on manufacturing and exports, said Western and Chinese experts at the state TV debate, on the sidelines of the World Economic Forum being held here.

Besides, India has comparative strategic advantage in the value chain whereas China relied mostly on the labour and cost advantages, said Fu Jun, professor of the Political Economy of the Peking University.

"India in comparison has done a better job", Mr Jun said.

"What is interesting from now on is which one is more viable. I have to give credit to India. What India will do next is to continue the strategy and move into other areas. By comparison we (China) have to readjust our strategy into manufacturing. I do not see reasonable balance between supply and demand," he added.

Human resources development minister Kapil Sibal, who was participating in the debate, said, "Because our economy is based on domestic demand, there is much greater innovation and ability of the entrepreneurs to actually produce wealth. In the long run a lot of innovation and lot of wealth production is going to come from our part of the world."

Martin Wolf, associate editor of the Financial Times, who was critical of the Indian growth model said, however, "Indian development is working despite failure of organisation and poor infrastructure. It is clear that lot of successful multinational companies have good assets in India."

The debate, the first of the three was held on the side lines of the Geneva based World Economic Forum which was being held at Chinese port city of Tianjin, where over 1,400 political, business leaders and economists gathered to deliberate on "Driving Growth through Sustainability".

Besides Mr Sibal, Karnataka chief minister, BS Yeddyurappa and a host of Indian business leaders are taking part in the meeting, which is inaugurated today by Chinese prime minister, We Jiabao.


Mop-up from IPOs, rights issue flat at Rs2,961.9 crore in July

New Delhi: The quantum of funds mopped up by India Inc from initial public offers (IPOs) and rights issues in July remained flat at Rs2,961.90 crore, almost similar to the previous month, even though the number of firms, which came out with offers had fallen by almost one third of that in June, reports PTI.

Corporates had raised Rs2,961.80 crore in June when a total of seven offers - including three initial public offers (IPOs) and four rights issues - hit the market, market regulator, Securities and Exchange Board of India (SEBI) said.

As against this, only five offers hit the market during July, including three IPOs and one rights issue.

"During July, 2010, Rs2,961.90 crore was mobilised in the primary market through five issues, compared to Rs2,986.8 crore mobilised through seven issues in June," the latest issue of Capital Market Review released by SEBI said.

Analysts said corporate India's fund-raising plans continued to move at a slow pace in June, following the pattern of the last few months, due to volatility in domestic and global markets.

However, the number of qualified institutional placements (QIPs) went up over two-fold in July, with five hitting the market during the month, as against only two in June.

The amount raised from QIPs jumped by a staggering over nine-fold to Rs3,712 crore in July from Rs421 crore in June, SEBI added.

All the QIPs in July were placed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

However, preferential allotments saw a decline in July, with only 38 coming out that raised Rs1,232 crore. In June, a total of 59 preferential allotments had hit the primary market, raising a total of Rs3,507 crore.

"There were 38 preferential allotments (of Rs1,232 crore) listed on the BSE and NSE during July, 2010, compared with 59 allotments (of Rs3,507 crore) in June. Twelve preferential allotments (of Rs154 crore) were listed at both the BSE and NSE," SEBI said.


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