SPECIAL REPORT: INDIAN MEDIA COVERAGE OF STATE

UNCLAS SECTION 01 OF 04 NEW DELHI 000181 SIPDIS STATE FOR NP, AC, PM STATE FOR INR/MR STATE FOR SCA/INS, PM/CBM, PM/PRO STATE FOR SCA/PPD, PA/RRU STATE FOR AID/APRE-A USDOC FOR 4530/IEP/ANESA/OSA FOR BILL MURPHY E.O. 12958:N/A TAGS: KMDR KPAO PGOV PREL IN SUBJECT: SPECIAL REPORT: INDIAN MEDIA COVERAGE OF STATE OF THE UNION ADDRESS SUMMARY: President Barack Obama's January 27 State of the Union address received extensive coverage in India's print and electronic media. While most leading newspapers have yet to react editorially, the President's remarks that it is time to end tax breaks to American outsourcers was received very negatively. Although Indian industry itself seemed composed, the media expressed fears of damage to India's outsourcing industry. The media also feared repercussions for India from the President's remarks regarding US withdrawal from Afghanistan, the energy and climate change bill, and securing vulnerable nuclear materials around the world. Headlines and synopses of news reports and opinion from Indian's leading press follow. This report incorporates input from New Delhi and the four Consulates General in India. END SUMMARY "OBAMA-SPEAK: HELLO, WAR ON RECESSION; GOODBYE, WAR ON TERROR" ¶1. "Amid talk of fading allure and promises not kept, an embattled President Obama, bruised by economic, political, and foreign policy crises in his first year in office, has pledged to stop US companies from taking jobs overseas and warned Americans about increasing competition from China and India," India's leading daily THE TIMES OF INDIA said. ¶2. The paper's Washington correspondent Chidanand Rajghatta said, "As has now become the norm, the President invoked the growth of China and India to gee up the home constituency on the economic front." President Obama also set a target of doubling US exports over the next five years, a goal that will inevitably bring pressure on countries such as India to open its markets, warned Rajghatta. ¶3. Pointing out that very little of the speech was devoted to foreign policy, the report said: "In sharp contrast to the many Bush speeches, he mentioned the word terror or terrorists only twice in his speech; there were nearly 50 references to jobs and economy, a clear indication of where the Obama administration's emphasis will be in the remaining three years of its term." "OBAMA TARGETS OUTSOURCING, WANTS US JOBS" ¶4. A news report in THE INDIAN EXPRESS said the President's "rhetoric once again sent shivers down the [Indian] industry's spines, as the US market accounts for close to 60 per cent of its revenues." His statement "may not impact the Indian outsourcing industry immediately. However, as a reiteration of his administration's policy direction, it could spur the domestic IT & ITeS sector's ongoing efforts to broaden the geographic horizon of its business," the paper said. "OBAMA RAISES BOGEY ON OUTSOURCING AGAIN " NEW DELHI 00000181 002 OF 004 ¶5. Immediate reactions from India's information technology firms suggest that there is little cause for worry, THE BUSINESS STANDARD economic daily reported. They believe that outsourcing is here to stay since recession-hit US firms need to cut costs, for which they have to offshore to low-cost destinations like India, the paper noted. "BUCK UP, INDIA IS COMING: OBAMA" ¶6. A report in THE HINDUSTAN TIMES pointed out that, "This is the first time India has been mentioned as an economic challenge in a US State of the Union address. The last time India was cited was in 2002 - when George W Bush invoked it as an ally against terrorism." ¶7. In a strategic analysis of the speech, the paper said: "Though foreign policy was relegated to the end of the speech, Obama threw up some issues that will concern New Delhi. First, he explicitly spoke of bringing back US troops from Afghanistan starting July next year. India sees any US withdrawal from Afghanistan - that may allow the Taliban to takeover - as inimical to its interests. Second, Obama promised to pass a U.S. climate change bill. This is likely to result in renewed pressure from the West on countries like India and China to fix carbon emission targets, a move they are presently resisting. Finally, Obama again committed himself to launching a worldwide program to secure nuclear materials worldwide. India will watch to see if this policy will include finalizing the Comprehensive Test Ban Treaty and the Fissile Materials Cutoff Treaty." "US TARGETS OUTSOURCERS BY ENDING TAX BREAKS" ¶8. In a report, the DAILY NEWS & ANALYSES newspaper said President Obama's "aggressive bid to revive the stagnant US job market may be bad news for India's expanding IT-BPO sector." Rajiv Khanna, president of the India-America Chamber of Commerce, told the paper's Washington correspondent: "You don't create economic prosperity in the US by destroying the global competitiveness of American companies." The Indian software services industry body NASSCOM's vice- president, Ameet Nivsarker, told the paper: "I think the concerns we have is about indirect protectionism." "INDIAN COMPANIES UNFAZED BY OBAMA'S ANTI-OUTSOURCING CALL" ¶9. Som Mittal, president of NASSCOM, told THE ECONOMIC TIMES business daily in Bangalore that President Obama has several short- and long-term pressures to cope with, but that does not mean any significant impact for the outsourcing industry. "We will be their solution and not the problem," he was reported saying. The paper reported on experts in India saying such protectionist measures are short-sighted because many US companies derive significant revenues from outside the country, and any protectionist stance could lead to a backlash NEW DELHI 00000181 003 OF 004 in other markets. NEWS HEADLINES ¶10. India's regional and vernacular newspapers ran wire stories from Washington. While the reporting was straightforward and objective, the slant was in the headlines. Some "commentative" headlines follow: -- "Obama fury once again on outsourcing" - DAINIK JAGRAN Hindi daily -- "Obama impatient on outsourcing: Nervous of Rising India" - NAVBHARAT TIMES Hindi daily -- "Obama shakes up India on outsourcing" - AMAR UJALA Hindi daily -- "Obama roars at companies that outsource" - JANSATTA Hindi daily -- "Wake up America before India and China take over" - LOKSATTA Marathi daily -- "Obama Raj: Jobs only for the sons-of-the soil" - LOKMAT Marathi daily -- "If one were to cross line drawn by Obama....Tax, subsidy exemptions cut" - EENADU Telugu daily -- "Obama vows to repeal law that denies military jobs to gays" - ETEMAAD URDU DAILY -- "Obama: Iraq War Ending, All Troops Coming Home" - SIASAT Urdu daily -- "Obama vows to keep pressure on Al Qaeda" - HINDU BUSINESS LINE English daily -- "U.S. troops will withdraw from Iraq in August: Obama" - DAILY THANTI Tamil daily -- "One out of Ten American is jobless: Obama" - DINAMALAR Tamil daily -- "Jolt to Indian IT sector: Tax breaks to be cut for outsourcing - Obama" - DINAMANI Tamil daily -- "Once again Obama shows nervousness about India" - KANNADA PRABHA Kannada daily -- "Hunter trapped in own trap; Atomic arms fear mounts on Uncle Sam" - HAMARA SAMAJ Urdu Daily -- "Obama casts angry look on India" - RASHTRIYA SAHARA Urdu Daily -- "Obama promises Iran will face consequences" - SAHAFAT Urdu daily -- "Atomic weapons biggest threat for America: Obama" - HINDUSTAN EXPRESS Urdu daily -- "Obama warns Iran of consequences in his address" - AKHBAR-E-MASHRIQ Urdu daily -- "No mention of Middle East and Israel-Palestine problem in speech" - AKHBAR-E-MASHRIQ Urdu daily -- "Obama fights to recharge embattled presidency" - MORUNG EXPRESS English daily -- "Obama fears India, mounts pressure to stop outsourcing" ANANANDABAZAR PATRIKA Bengali daily OPINION ¶12. As of yet, only a few opinion pieces have emerged based on the President's speech. Excerpts follow: "PAWNS OF PATRIOTISM," editorial in January 29 right- of-center Gujarati daily, MUMBAI SAMACHAR: "President Obama's remarks are a living example of how even the NEW DELHI 00000181 004 OF 004 most-modern, developed, liberal-thinking and freedom- loving nation like America can get edgy when things start getting worse. Also Obama doesn't seem to have many options to regain his dipping popularity ratings other than raking up old issues which he did during his election campaign." ¶13. "INDIA'S YOUTH POWER CAN PIP AMERICA," editorial in January 29 centrist Gujarati daily, DIVYA BHASKAR: "President Obama's remarks seem to be propelled by problems galore on the home front, resulting in his popularity graph dipping continuously... His apprehensions about America slipping to number two position are an opportunity for India's youth to defeat the US in the global race through sheer intelligence and hard work." ¶14. "OBAMA'S DREAM AND THE GENERAL REALITY," editorial in January 29 centrist Marathi daily, SAKAL: "President Obama's State of the Union Address shows how its own interests are over everyone else's for the U.S. The President wants to hit the reset button and put the U.S. economy back on the tracks. Encouragement to small-scale enterprise and rise in local jobs is priority number one for the president. Rise in employment levels is part of his idea of a superpower. He intends serious fiscal and tax reforms, though of course it is not clear if he is in a position to rein in the financial institutions which have ruined the economy so far." ¶15. "ON STICKY WICKET," editorial in January 29 English daily, DECCAN HERALD: "President Obama has made his first State of the Union address in a difficult political and economic environment when his popularity has sharply plunged. The message that he has sent out is a mixture of populism and hard talk which may boost his ratings but may not ultimately help the economy or lessen his political troubles. He has concentrated on the domestic agenda and sidestepped most of America's problems abroad." ROEMER