Seeking greater access to Indian markets to protect American interest, US President Barack Obama has said that countries trading with it would have to reciprocate and open up.

“There has to be reciprocity in our trading relationship. And if we can have those kind of conversations — fruitful, constructive conversation about how we produce win-win situations. Then I think we will be fine,” he said while interacting with students at St.Xaviers college in Mumbai on Sunday on the second day of his India visit.

Referring to the American sentiment as also the Congressional elections where his Democratic party suffered reverses, Obama said American people felt it would be a bad deal if trade was just a one-way street where others get to sell their products in the US.

“If the American people feel that trade is just a one-way street, where everybody is selling to the enormous US market but we can never sell what we make anywhere else, then the people of the US will start thinking that this is a bad deal for us.”

He cautioned that this could end up leading to a more protectionist instinct in both parties not just among Democrats but also Republicans.

“So, that we have to guard against it.”

Pointing that America’s position has changed from being the most dominant economic power, with the “incredible rise of India, China and Brazil,” he said though US remains the largest economy and the largest market, there was real competition that was keeping America on its toes.

Elaborating on the purpose of his Asia 10-day visit that would also take him to Indonesia, South Korea and Japan, he said that America would grow and prosper if it was trading with Asia, the fastest growing region of the world.

“We want access to your market — we think we have good products to sell, you think you guys have good products to sell (to) us. This can be a win-win situation.

“So, I want to make sure that we are here because this will create jobs in the US and can create jobs in India. But that means we have to negotiate this changing relationship,” the President said.

America had gone through the toughest two years since the 1930s on account of the profound financial crisis and an economic shock post-2008, he said, adding that the impact was still felt all over the world.

“India weathered it better than many countries,” he said, adding that the G-20 was focused to make sure that the world financial system did not collapse and the economy stabilised.

To a pointed question about the mid-term election in the US and if the American people wanted a change, Obama said unemployment there was very high compared to the last several decades and people were frustrated as the country was not making progress quickly enough.

Unemployment in the US is hovering at 9.6 percent for sometime now and yesterday, the President announced deals between Indian and US companies that could create over 50,000 jobs in the US.

The visiting US President said that people had expressed their unhappiness (in the polls), making it pertinent for mid-term correction and adjustments over the next several months involving discussions with the Republican party.

In this context, he said the US has an enormous partner in India and “India is going to be a critical partner of the US in the 21st century.”

He said there was going to be a tug of war within the US between those who support globalisation and others and added that the challenges have to be managed along with the opportunities without being afraid of them.

Recalling the decades of 60s and 70s, he said at that time American economy could be opened without the trading partners doing so.

“So, if India was protecting certain sectors of the economy, it did not have such a big effect on us. We did not need necessary reciprocity, because our economy was so much larger.

“Well now, things have changed. So, it is not unfair for the US to say if our economy is open to everybody, countries which have trade with us change their practices to open up their markets to us,” he remarked.

His remarks come in the backdrop of US companies seeking access to India’s financial markets, retail and other sectors.

Indo-US bilateral trade stood at USD 36.6 billion in 2009-10 and Obama on Saturday hoped to double US exports in the next five years.

US exports to India account for only two percent of all the goods Washington ships out to the world.