Nasscom worried over US indirect protectionism
Reacting to US President Barack Obama's decision to end tax breaks
for companies shipping jobs overseas, the National Association of
Software and Service Companies (Nasscom) on Thursday hoped that the US
government would not take protectionist measures to stop outsourcing of
jobs. Referring to Obama's first state of the Union address, Nasscom
Vice-President Ameet Nivsarkar said the industry was worried over
indirect protectionism that might hit the Indian information technology
and outsourcing industry hard, as over half of India's $60 billion IT
and outsourcing industry revenue come from the US. In his address, Obama
had stressed on creating new jobs and called for encouraging businesses
to stay within the US borders.
"It's time to finally slash the tax breaks for companies that ship
our jobs overseas and give those tax breaks to companies that create
jobs in the United States of America," the US President said. However,
Nivsarkar felt that the real worry was protectionism and not tax breaks.
"I do not think tax break issue is really the one which is important for
us.
Obama's comment was not related to outsourcing. It is about the US
companies operating in regions where they get tax benefits," he pointed
out. According to Nivsarkar, the slashing of tax breaks would hit the
American companies more. "The whole issue about taxing companies that
were shipping jobs overseas does not relate to the work that is done out
of India or other locations.
That is really about US subsidiaries which have set up plants
overseas," he added.
Nasscom had been lobbying hard to ensure that the US administration
did not take protectionist measures and put curbs on visas to
professionals.
Last year after Obama was elected President, a Nasscom delegation had
visited the US and met policymakers and stakeholders in the US Congress
and administration to protect the interest of the Indian IT and BPO
industry.
Courtesy: The Hindu
|