US President, George Bush rules out protectionism to check BPO effect

Washington: Hailing India’s economic progress, US President George W Bush on Wednesday said it needed to do more on liberalisation and lifting caps on foreign investment even as he ruled out any protectionist measures to check the adverse effect of outsourcing on his country.

Just over a week ahead of his visit, he said the expansion of India’s economy would mean "greater stability" for the South Asian region besides bigger market for America’s businesses, workers and farmers.

"The area of America’s relationship with India that seems to receive the most attention is outsourcing," Bush said addressing the Asian community.

"It is true that a number of Americans have lost jobs because companies have shifted operations to India," he said, adding losing a job was "traumatic" and "difficult" as it put strain on "our families."

"But rather than respond with protectionist policies, I believe it makes sense to respond with educational policies to make sure that our workers are skilled for the jobs of the 21st century," he said.