"There is no way to legislate against reality," she explained, according to quotes reported Monday by the Asia Times. "We are not in favor of putting up fences."

Clinton's defense of outsourcing came despite what she said was the inevitable hardship for U.S. workers. "I have to be frank," she told the Indian group. "People in my country are losing their jobs and the U.S. policymakers need to address this issue."

But Mrs. Clinton sought to reassure Indian officials in the wake of last year's U.S. presidential campaign, where the candidate she supported, John Kerry, repeatedly blasted the Bush administration for outsourcing jobs to countries like India.

"There are people who feel left behind and [that] might stir up negative feelings against India because they do not understand the economic benefits of outsourcing," The New York Democrat said, hinting that critics like Kerry were ill-informed.

Noting that the Indian exports to the U.S. were nearly three times what the U.S. imports to India, Clinton said the best way to remedy U.S. economic hardship was for India to buy more American products.

Editor's note: