India may contest Obama's move against outsourcing in WTO

India on Thursday indicated that the US move against outsourcing may be contested in the World Trade Organisation, stating New Delhi will take up the issue with Washington.

"We have to ensure what they (US) are doing is WTO compatible when we are talking about trade, movement of goods, movement of people and movement of services," Commerce and Industry Minister Kamal Nath said in New Delhi.

"Yes, of course," he said when asked if India will take up the issue of outsourcing with the US administration.

In his first address to the joint session of the US Congress yesterday, Obama stated his administration would end tax breaks for corporations that ship the US jobs overseas.

Nath said, "One has to see how the US companies using India as a base for technological development respond to their own government." Outsourcing of technology development by large companies cannot be switched on and off, he added.

About 1,000 American firms, which have moved their jobs abroad, are expected to be affected by the proposed Obama move against outsourcing.

Among the major US companies, which have shipped jobs to other countries like India include General Electric, Microsoft, Hewlett-Packard, Motorola, Pepsico and Proctor & Gamble.