The European Union has scotched any apprehension that it might come up with act to curb outsourcing of services to third world countries like India.

Francisco Da Camara Santa Clara Gomes, ambassador of EU in India, said the Union believed in free market economy and there was no proposal to restrict outsourcing jobs to India.

"We are in favour of free movement of goods and services. Companies are not being restricted to stop IT outsourcing to India or any other countries," Gomes said.

• India and Outsourcing: Complete Coverage

Merit mention, public opinion was gaining ground against movement of white collar jobs to India in some of the EU member countries, notably in United Kingdom.

Across the Atlantic, the protectionist move was even stronger as United States brace up general election later this year.

Gomes who was in Kolkata to formally announce a project on environmental risk reporting and information systems, said quotas on textile and steel would also be lifted by end of 2004.

"Opportunities for India will also increase with 10 new countries joining the EU. "Export figure shows that India's trade with accession countries is on the rise. Indian exporters are going to benefit from the integration," he said.

Environmental project grant to ICC

Indian Chamber of Commerce has bagged a grant of 400,000 euro for carrying out project on environmental risk reporting and information systems under EU-India Economic Cross Cultural Programme.

The project, first of its kind in India, envisages setting up ERRIS at the industrial townships of Haldia and Durgaur of West Bengal and supporting a framework at the ICC headquarters to enable proper function of the system.