Y.K. Modi

The ongoing debate over outsourcing in the U.S. should be taken “with a pinch of salt” considering it is happening during in an election year, Yogendra Kumar Modi, well known industrialist and president of the Federation of Indian Chamber of Commerce and Industry (FICCI), has said.

“By and large the U.S. industry is in favor of outsourcing. It is really a hyped up debate since this is an election year. I would take the debate with a pinch of salt,” Modi, chairman of YKM Holdings who is leading the third annual joint delegation of Indo-U.S. Parliamentary Forum (IUPF) and FICCI to the U.S., told News India-Times. “Both India and the U.S. are benefiting from outsourcing. The job loss as a result of outsourcing is small. On the other hand, the loss of manufacturing jobs to China is far greater,” Modi said.

The IUPF-FICCI delegation is on its annual visit to the U.S. during which a group of members of Parliament and businessmen interact with lawmakers, think tanks and other opinion makers. “The primary purpose is to expose our parliamentarians to the U.S. ways of working, both in politics and business. It is also to showcase India’s political strength since the delegation has members from different political parties,” Modi said.

Asked if he believed any significant change had happened in the Indian government’s economic policy, he said, “Not really. There is no significant change except in the area of privatization/disinvestments of public sector companies.

Modi said there has been a perceptible change in the way the U.S. now views India and its economy. “Indian business is doing good. There is a clear recognition of that,” he said.