Reacting sharply to the proposal by some US states to ban outsourcing of state data processing contracts to developing nations, Union Law and Commerce Minister Arun Jaitley said the move was against the principle of market access.

"We are placed on high moral ground to take it up at the World Trade Orgnisation negotiations," he added.

Speaking at the foundation stone laying ceremony of the Federation of Indian Exporter's Organisation's building in New Delhi, Jaitley said while the buzz word in world trade was "market access," the rule was "market denial" when it came to areas where developing countries were competitive.

The Sunday Telegraph newspaper of UK reported that New Jersey, Maryland, Connecticut and Washington were considering bringing legislations to ban outsourcing of government contracts to the companies of the developing countries.

Jaitley, who had discussed the issue with US Trade Representative Robert Zoellick at Tokyo mini-ministerial meeting of WTO, also said he did not believe such moves would have any immediate adverse impact on the Indian software industry.

He said it was the competitiveness of the Indian industry, which had made a powerful economy like US think that it was losing jobs to a small town like Gurgaon.