OBAMA-ECONOMY 3LST

To a question on how US policies affect India, Obama
said: "I actually think that the US has an enormous partner in
India probably because we have so many Indian Americans
because of the shared values that we have.
"India is going to be a critical partner with US in the
21st century. That was true when George Bush was President and
that was true when Clinton was President. I don't think our
firm belief is going to alter in a significant way."
As regards the challenges of globalisation, he said: "I
think it is going to be a tug of war within the US between
those who say globalisation is a threat and want to retrench
and those who accept that we live in an open and integrated
world, which has challenges and opportunities.
"We have to manage those challenges and manage those
opportunities but should not be afraid of them."
His remarks assume significance given his government's
stand against tax breaks to companies that ship out jobs to
low-cost destinations like India and increasing resentment in
the US against outsourcing.
"I want to make sure that we are here because this will
create jobs in the US and can create jobs in India. But that
means we have to negotiate this changing relationship," the
President said.
"There has to be reciprocity in our trading relationship
and if we can have those kind of conversations - fruitful,
constructive conversation about how we produce win-win
situations, then I think we will be fine.
"If the American people feel that trade is just a one-way
street, where everybody is selling to the enormous US market
but we can never sell what we make anywhere else, then the
people of the US will start thinking that this is a bad deal
for us and I could end up leading to a more protectionist
instinct in both parties not just among Democrats but also
Republicans. So, that we have to guard against it," Obama
said. PTI