New Delhi: India on May 26 reacted sharply against the four US states reportedly proposing to ban outsourcing of state data processing contracts to developing nations.

Union Law and Commerce Minister Arun Jaitley said the move was against the principle of market access, and "We are placed on high moral ground to take it up at the (World Trade Organisation) negotiations".

Speaking at the foundation stone laying ceremony of Federation of Indian Exporter's Organisation's building, he said while the buzz word in world trade was "market access", the rule was "market denial" when it came to areas where developing countries were competitive.

'The Sunday Telegraph' newspaper of UK reported on May 25 that New Jersey, Maryland, Connecticut and Washington were considering bringing legislations to ban outsourcing of government contracts to the companies of the developing countries.

Jaitley, who had discussed the issue with US trade representative Robert Zoellick at Tokyo Mini- Ministerial Meeting of WTO, also said he did not believe such moves would have any immediate adverse impact on Indian software industry.

He said it was the competitiveness of the Indian industry that had made a powerful economy like US think that it was losing jobs to a small town like Gurgaon.

PTI