You would have heard about the recent restrictions that US government is putting on outsourcing services and export trade for other countries.. majorly affecting Indian and Chinese interests in the US market.
I subscribe to a newsletter from a non-government, non-profit 'National US INDIA chamber of commerce', which reports 'clear-and-accounted' lobbying of some Indian companies in the US for easing US stand on its restrictions..
India Inc paying millions on lobbying in U.S.
Wednesday,6th May 2009
Washington: Indian companies, including top corporate entity RIL and industry body Nasscom, are paying thousands of dollars on lobbying with lawmakers and government departments in the U.S. on issues ranging from immigrant visas to bilateral trade and individual business ventures.
Four Indian entities - Reliance Industries, Nasscom, Sun Pharma and Orchid Chemicals - have together paid close to $2,75,000 (about Rs 1.4 crore) towards lobbying their causes during the first three months of 2009, says the disclosure reports filed by lobbyists firms with the Senate and the House of Representatives.
Out of this, RIL has paid $1,90,000 to BGR Holding, a high-profile lobbyist group that has many Fortune 500 firms and foreign governments as its clients, for providing 'strategic counsel on issues related to trade.'
Incidentally, the U.S. Congress and House of Representatives are currently considering new legislations to penalize companies that supply petroleum products to Iran, which includes RIL. The penalty could include a ban from doing business in the U.S. Besides, Nasscom has paid $70,000 to the same lobbyist, BGR, in the first quarter of 2009 for lobbying on international technology and immigration issues.
Indian software industry has reacted sharply to the recent moves by the U.S. administration to put curbs on H1-B visas, a skilled foreign worker visa that have largely been given to Indian IT professionals in the past.
While the payment made by Sun Pharma in Q1 2009 is below $5,000, Orchid Chemicals has paid $10,000 for lobbying on issues related to the U.S. drug regulator FDA's policies. Sun Pharma's lobbying issues have been related to the citizens' petitions and FDA reforms. While there are no past disclosures about RIL's lobbying attempts, Nasscom, Sun Pharma and Orchid have been quite active on this front in the past.
Purnima Voria, Founder/CEO
National US India Chamber of Commerce (NUICC)
My take:
US 's recent restrictions on trade is more so like war-time Restrictions / Sanctions which could have very serious reverberating summary effect on the industries.. especially in India, because India's software industry and general economy itself is very much dependent on business with the US.
While US is doing this as a economy-saving measure for themselves, they are actually making it worser for them without realizing it, because these restrictions would mean many US industries or products built there will be more costly than in recent past, though there will be advantage that unemployment problems in US will get a breathing, and also US people will grow more mature to have competitive salaries in their jobs and more drive to make cheaper products or services.. rather than thinking cheaper always means outsourcing or allowing the markets to import.
An important thing of Note about US: I don't know How and Why the US legalises things like Lobbying the senate and lawmakers, spending billions for election campaign taking money through donor companies/industries itself, and all..
If bribing a senator to help work on a law is accounted as legal as 'Lobbying' or such people as 'Lobbyists', accounting those costs, then it is like just running a Casino.. not a government I think.
Also, if companies/industries can donate huge sums legally (after paying taxes) to the republicans or democrats, and if the parties can spend any amount for election campaigns, then I think they are just making all their hard earned money flow into forming a government which will then run the casino.. and all politicians and lobbyists make lot of money, and people make "nothing".. all this legal.
It is typically a routing that politicians in america have created over the years to bring all the money to their coppers.
There are presidential campaign reported expenditure websites and accounted statements online, which have something like 20-60 billion US$ being spent by the ruling party's next presidential campaign. That is a horrifying canal route bleeding every American's pocket to make that sum. The capitalist organizations bleed the people by over-pricing their products, then donate it to presidential campaign funds. .. This happens in every country.. but then, it will only be a few hundred millions.. not any close to the figures that americans pay to their president and his people.
First Americans have to correct all this, rather than stupidly thinking that buying services from India / China is costing them their economy. Buying from these countries could only make their economy stronger because of cheaper costs.. Is it real that they don't understand that ?, and they still believe all their president's and governments words about where all the money has gone ?..