The US is seeing an increasing level of unemployment. Last month, it reached 9.6 percent. In his India visit, President Barack Obama said shifting work to outsourcing destinations such as India has cost Americans their jobs.
This is a major blow to the Indian IT industry, since about 60 percent of its $60 billion IT and IT-enabled services exports come from the US.
The US is increasing visa fees and implementing other protectionist measures as the country bounces back from the economic downturn and faces high unemployment levels. "As we look to India today, the US sees a potential to sell exports in one of the fastest growing markets in the world. For Americans, this is a job threat as we recover from recession," Pres. Obama said.