Seeking opening up of markets by India as a response to outsourcing, the United States on Tuesday said trade must be a two-way street and Indians must realise that painful dislocation and job loss in the US could become a political problem.

"Outsourcing offers India job creation and investment, provides US firms with improved efficiency and profitability. This would present a true win-win situation. But to succeed, trade must be a two-way street," said Robert O Blake Jr, Charge d' Affairs, US Embassy, at the Asia Tech 2003 summit in New Delhi.

He said Indians must realise there was much painful dislocation and job loss in the US and this could be a political problem.

"The answer to the economic challenges is not to restrict outsourcing. It is to open markets. An open international trading system has the benefit of more competitive markets and the best means of ensuring it is through removal of barriers to trade and investment," Blake said.

The US official said the government did have a role in helping the growth of IT sector in India through its policies as the Indian IT industry needed assistance in specific areas.

"Despite improvements in copyright laws, India still does not offer the level of IPR protection needed for a modern economy, particularly in respect to enforcement," he said.