Yashwant Sinha says the BJP will link implementation of the nuclear deal to outsourcing decisions by the US. He says why should India provide jobs to Americans who make nuclear reactors when Obama is taking away outsourcing jobs from India.
Even if India goes in for serious expansion of nuclear power, I seriously doubt the number of jobs that would be generated in the US because of making nuclear reactors for us, at least when compared to the number of outsourcing jobs in India. The reason is that I believe the nuclear reactor manufacture is highly technology-intensive with not very huge labour requirements. Also, there are non-US players like Areva who are also possible manufacturers.
Also it is WE who need the energy. India's growing energy requirements demand newer or at least bigger sources of energy. So Sinha's reaction is like cutting off the nose to spite the face.
Obama's move might not be very palatable for us but still it is justifiable. A recent newspaper report mentions a KPMG senior management guy saying that even after the proposed tax measures on US outsourcing companies are implemented, it will still make business/monetary sens to outsource. If Obama decides to actually impose additional (or punitive) taxes on outsourcers, that is when we have to seriously worry. The US economy is in a bad shape. So Obama's measures are understandable. Are these issues so ununderstandable to the former civil servant who has been a former finance minister as well as foreign minister of the country, or is this simply political posturing?
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