How will Obama's visit to India affect jobs in America ?

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Answered by: Prashant, An Expert in the World News - General Category
Before Obama's visit to India a lot of questions were raised about how his visit would affect the job situation in the US. There have been noises raised in the US about how outsourcing was causing immense job losses in an already struggling American economy and all these jobs were being relocated to India. The people raising these voices however fail to recognise that most of the job losses are in the manufacturing sector which are being relocated to China and not India. China offers cheaper manufacturing costs so it is inevitable that these would go to China.

Now that Obama's visit to India has ended it turns out that the President has good news for the American public having signed contracts for more than 10 billion dollars which would help to create more than 55,000 new jobs in the US. Major American corporations like Boeing, General Electric and Honeywell are expected to gain from these contracts signed by the President. There are also billions dollars worth of contracts which are currently in the pipeline and for which American companies are pitching and President Obama's visit would boost their chances of bagging these contracts.

Also the removal of certain Indian companies from the "Entity List" ie companies which are banned by the US for high technology transfer means that these companies would now have access to Us technologies and at the same time various US companies would now be enabled to sell billions of dollars worth of high technology products to these Indian companies, again good news for American manufacturing sector. The Indo-US Nuclear deal once it goes through would again provide a huge oppurtunity to American companies to supply nuclear techology to India for nuclera power plants which would feed India's massively growing energy needs.

Also during the visit Obama met various Indian business leaders and implored them to invest in the US and encouraging them to set up facilities in the US. These facilities would again create jobs in the US and since most Indian companies are flush with funds due to the rapidly growing Indian economy they would like to gain the innovation and technology that the US leads the world in. Also increasingly Indian software companies have been investing in the US and most of them have already set up facilities in the US.

All the above stated facts make it clear that instead of the commonly percieved notion in the US that jobs are being located overseas in India, jobs are being created in the US by closer interactions between the two largest democracies of the world. And even when the jobs are outsourced to India the major gainers are the American companies as they can cut costs, have higher profits which can then be invested in the US economy. Summing it up the closer interaction between the US and India is a clearly a win win situation for both countries and Obama's visit has given a clear indication how India can help in creating jobs in the US.

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