THIRUVANANTHAPURAM: Sentiments against outsourcing and jobs for foreign nationals are a natural fallout of the large-scale loss of jobs triggered by the meltdown and these issues will get sorted out in time, says Diane McMahon, former Director of the US-India Bus iness Council with the US Chamber of Commerce.
She had co-ordinated the July 2005 meeting between US Congressional Members and Prime Minister Manmohan Singh, which was a major milestone in the path to the Indo-US nuclear deal.
Diane, who is now Vice-President of Stonebridge, a leading international business advisory firm, is in the capital to attend a panel discussion on `Indo-US business relations in the changed economic scenario’ organised by the INKEL Forum of Excellence and Trivandrum Management Association.
In a chat with Express, Diane observed that the crisis also provides opportunities and the time is ripe for Indian companies to look at acquiring US companies. The global meltdown offers very good business opportunities and chance for strategic relationships.
All the big guys (from India) have realised this potential and moved right in. Tatas have taken the initiative for the Jaguar - Landrover acquisition.
L&T, Mahindra&Mahindra, Punch Lloyd , Crompton&Greaves are all in the fray. Everyone is still trying to figure out the financials and the repercussions of the crisis. The Government and people are watching how the stimulus package works out and whether the money is made to good use.
We should also see whether there would be another stimulus package or an add on.
We should also understand that repeated requests for stimulus packages are not the answer to the crisis.
When jobs vanish by the day it is only natural that a sentiment against outsourcing gains momentum.
The meltdown has hit US hard, major sectors are affected thereby threatening the backbone of the economy.
The spin of the Wall Street came as a real surprise. It is a hard call. Lay offs and employment drops are on the rise and it may continue for another year or two.
We haven’t seen the worst yet. Once the depression is over, the apparent slump in outsourcing will also be addressed, she said.
Diane felt that the future of the nuclear deal would depend on the next Government in India and how it follows up on the remaining hurdles.
There is a hearing this week in the US House of Representatives on the 123 Agreement. However, the Obama Administration would only carry forward the deal as the Democrats had given their go ahead during Congressional debates, she said.
It is true that the Nuclear deal and related commercial and supply deals have taken a backseat due to the slowdown.
US companies had worked very hard to get the deal through.
However, it is only a matter of time before the respective governments take the deal forward, she said.