Will Indian outsourcing benefit from downturn?

The turmoil in the financial market is likely to spell good news for the Indian outsourcing companies, as the downturn will compel multinationals to seek further economies for sustenance in these tough times, Wipro Technologies founder Azim Premji has said.

In an interview to the Sunday Times, Premji insisted that "the Indian outsourcing giants will benefit from this downturn, as all multinationals seek further economies."

Premji's statement comes at a time when the United States President Barack Obama has proposed changes in tax laws to curb outsourcing.

Obama proposing change in tax laws of that country had reportedly said, it's a tax code that says you should pay lower taxes if you create a job in Bangalore, than if you create one in Buffalo, New York.

Premji also voiced its concern about the "creeping tide of protectionism" in the West and said that "If we get into protectionism, then the West is going to get a wave of protectionism in response, and that is going to turn back the clock 20 years".

Premji further warned that it will be America and Europe that will suffer, because they will be excluded from the only growth markets left, in Asia, Africa and China.

CXOtoday

India next to US in anti-dumping measures, says World Bank

With protectionism emerging as a major threat to the global trade flow, data compiled by World Bank shows that India is next only to the US in terms of new anti-dumping measures imposed by their respective governments.

Besides, the number of such measures increased substantially in the second half of 2008 in both countries, World Bank has said in its background paper for the G20 Finance Ministers and Central Bank Governors Meeting later this week in the UK.

The US imposed over 20 new anti-dumping measures during the July-December period in 2008, followed by 15 such measures by the Indian authorities.

As per the data compiled by the multilateral lending agency, India took more than 10 fresh anti-dumping measures in the first half of 2008 -- higher than any other country during that period -- while the US imposed less than five such measures.

Other countries where new anti-dumping measures are on the rise include Brazil and Canada, while European Union, South Korea and Egypt saw the number of such initiatives declining in the second half of 2008.

Agencies