Observing that outsourcing was inevitable in the 21st century, the United States Secretary of State Colin Powell on Tuesday said India should undertake trade reforms that would offset job losses in his country due to business processing outside, but maintained that there was no quid pro quo.

"Outsourcing is a reality in the 21st century global environment -- both outsourcing and insourcing. We believe reforms and openness benefit both countries. We didn't suggest opening up as a quid pro quo," Powell said at a joint press conference with External Affairs Minister Yashwant Sinha after their 90-minute discussion. He also met Finance Minsiter Jaswant Singh.

He was asked whether there was an implied link between restraint on the US' part in terms of maintaining a liberal regime and progress from India in opening up its economy.

Sinha said the two sides have agreed to remain engaged on the issue of outsourcing. "We will not allow this or any other issue to create any misunderstanding between us."

Powell said the issue of outsourcing was discussed during his intensive parleys with Sinha.

"While we have outsourced some job positions to India, there are opportunities for Americans as well to service Indian needs and we hope India understands the need for reforms so that we can have more opportunities here," he said.

Powell said outsourcing invariably did result in loss of jobs and "we have to do a good job in the US of creating opportunities to provide more jobs so that those who have lost jobs have opportunities in the future."