NEW DELHI: Not so long ago, US senator Charles Schumer was a chief guest at the India@ 60 celebrations in New York’s Times Square. Yet, when the same Schumer lashed out at Indian IT companies operating in the US, he joined a growing group of US legislators and leaders, going right up to President Obama, who have lobbed charges against Indian companies in the last year-and-a-half .
On last Thursday, the US Senate unanimously passed a bill on border security, simultaneously raising fees on H1-B workers that would hit companies like Infosys, Wipro, Satyam etc, a move that has made India Inc very angry.
‘Bangalored’ became a verb under Obama, but now, as earlier, the Indian government will hold its peace publicly, though officials have already taken up the unfairness of the legislation as well as the insulting remarks with the Obama administration.
However, there is growing anger on the street and in corporate India about what it justifiably feels is unnecessary criticism by the US government, particularly when India Inc actually contributes to the job market in the US. Frankly, it’s one thing attacking outsourcing, but quite another describing India’s blue chip IT giants as “chop shops” .
The Indian government’s silence on US lawmakers’ verbal outbursts will be questioned, coming in the run-up to a visit by the US president later this year. In fact, it can reasonably be assumed that this issue will feature during the visit, even though the government may not raise it. But Obama will certainly hear about it in all the civil society outreach he plans to do here.
One of the reasons for the silence is a growing understanding that in a year when the US Congress is going in for mid-term elections which promise to be a bruising experience for all incumbents in the House of Representatives and Senate, such populist pronunciations are going to be par for the course. Congressmen and senators alike are looking at constituencies and electorates who are jobless, in an economy that many say could even be heading for a double-dip recession. They respond in ways that at least sympathise with the pain of their electorates.
Tarun Das, former chief mentor of CII, said, “We will see much more of this as America struggles with its economic pain.”
The Indian system, following the passage of the bill through the Senate last week, was surprised at the speed with which it sailed through. It’s likely to go through the House as well. Democrats who expected Republicans to filibuster and stop the passage of the bill, found Republicans too giving in to this potent mix of protectionism and populism, because they too are vulnerable at the hustings . Ultimately, for US politicians, giving Indian IT companies in Bangalore a hard time is small cost specially in an election year. That’s reasonably clear.
It will also explain why the Schumer variety of outburst will be repeated over and over again in the coming months from other US leaders.