Bush: Outsourcing painful, but remedy is worse

NEW DELHI, India (CNN) -- Praising India's expanding economy, President Bush warned Friday that fears about job outsourcing to other nations should not prompt the United States to limit global trade.

"It's ... important to remember that when someone loses a job it's an incredibly difficult period for the worker and their families," Bush said in a speech in New Delhi.

"It's true that some Americans have lost jobs when their companies move their operations overseas," he said.

"Some people believe the answer to this problem is to wall off our economy from the world through protectionist policies. I strongly disagree." (Watch Bush explain why the U.S. and India are natural partners -- 2:36)

"The United States will not give into the protectionists and lose these opportunities," Bush said.

"For the sake of workers in both our countries, America will trade with confidence."

But he added that "India has responsibilities as well."

"India needs to continue to lift its caps on foreign investment ... and to continue to lower its tariffs and open its markets to American agricultural products, industrial goods and services."

Bush delivered the address just prior to traveling to neighboring Pakistan for talks on terrorism Saturday in Islamabad with President Pervez Musharraf. Pakistan is an important ally in the U.S.-led fight against al Qaeda.

Bush's arrival was preceded by widespread protests and a deadly attack Thursday outside the U.S. Consulate in Karachi. (Full story)

"On my trip to Islamabad, I will meet with President Musharraf to discuss Pakistan's vital cooperation in the war on terror, and our efforts to foster economic and political development so we can reduce the appeal of radical Islam," Bush said.

"I believe that a prosperous, democratic Pakistan will be a steadfast partner for America a peaceful neighbor for India and a force for freedom and moderation in the Arab world."