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"At a time when `market access' is considered to be the buzzword, market denial seems to be the rule when it comes to these States. As these are essentially Government procurement contracts, the impact will not be much. But this will place us on high moral ground to take this matter during trade negotiations," Mr Jaitley said.

NEW DELHI, May 26

THE Centre, on Monday, claimed that the proposed move of four American States to legislate the ban of outsourcing State data contracts to developing nations would have minimal impact on Indian business.

It, however, held that the proposed "market denial" move of these US States would place India on a "high moral ground" to take up this matter at a bilateral level during trade negotiations. The US States that are reportedly contemplating measures to curb the flight of jobs are New Jersey, Connecticut, Washington and Maryland.

"At a time when `market access' is considered to be the buzzword, market denial seems to be the rule when it comes to these States. As these are essentially Government procurement contracts, the impact will not be much. But this will place us on high moral ground to take this matter during trade negotiations," the Union Commerce and Industry Minister, Mr Arun Jaitley, told reporters here on the sidelines of foundation stone laying ceremony of the Federation of Indian Export Organisations' Niryat Bhawan in the Capital.

Mr Jaitley held that the only silver lining in the proposed measures of these 4 US States is that a powerful economy like the US is apprehensive of losing jobs to a competitive "Gurgaon".

In his address, Mr Jaitley lauded exporters' growth performance during the last fiscal and highlighted that this performance was achieved despite an appreciating rupee and domestic constraints such as high utilities cost, rigid labour laws and high cost of equity capital.

"It is not that the political system is unaware of the hurdles faced by the exporters. With the realisation coming, time is not far when the political system will ensure corrective steps that would enable Indian exporters to emerge as strong competitors in the global markets," Mr Jaitley said.

While terming the recent SARS epidemic in the East Asian countries as unfortunate, Mr Jaitley, however, highlighted that this situation does present opportunities for the Indian exporting community.

FIEO is starting construction of its national headquarters — `Niryat Bhawan', which is an office-cum-display complex designed to provide Indian exporters modern office and communication facilities for conducting business meetings, making presentations, holding seminars, conferences, workshops and hosting visiting delegations.

With a total covered area of 3,329 sq.m., placed in a plot admeasuring 3,350 sq.m, Niryat Bhawan will have five floors, besides a basement and a mezzanine floor. "The construction is expected to be over in a year's time. The total cost is between Rs 12 and Rs 15 crore," an FIEO official said.

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