Thursday, February 23 2006 10:40 Hrs (IST) - World Time -

Washington: Hailing India's economic progress, US President George W Bush yesterday(Feb 23,2006) said it needed to do more on liberalisation and lifting caps on foreign investment even as he ruled out any protectionist measures to check the advserse effect of outsourcing on his country.

Just over a week ahead of his visit here, he said the expansion of India's economy would mean 'greater stability' for the South Asian region besides bigger market for America's businesses, workers and farmers.

"The area of America's relationship with India that seems to receive the most attention is outsourcing," Bush said addressing the Asian community here.

"It is true that a number of Americans have lost jobs because companies have shifted operations to India," he said, adding losing a job is 'traumatic' and 'difficult' as it puts strain on 'our families'.

"But rather than respond with protectionist policies, I believe it makes sense to respond with educational policies to make sure that our workers are skilled for the jobs of the 21st century," he said.