Zeenews Bureau New Delhi, Feb 25: Outsourcing to India will take a beating as US President Barack Obama, while addressing the Joint Session of US Congress on Tuesday night, said in his maiden speech that the economic revival plan would translate to no tax breaks for American companies which offshore jobs.
India Inc is quite disappointed with the same as this package nips in the bud any potential plans for prospective US companies which might have thought of investing in India.
The reaction that emanated from India had a disappointing tone. Several noted industrialists condemned the speech and said that it could spell doom for the BPO industry here.
But the Secretary General of India’s apex industry chamber FICCI Amit Mitra added that Obama’s tax policy will also “hurt American companies”.
With Tuesday’s announcement America’s first Black President set to rest all speculation that he may soften his stand on the issue of outsourcing.
In his address, the President also remarked that he will also end tax breaks given to America’s wealthiest by the Bush government. However he clarified that this would not affect main street America and downwards.
"Let me (be) perfectly clear, because I know you'll hear the same old claims that rolling back these tax breaks mean a massive tax increase on the American people. If your family earns less than USD 250,000 a year, you will not see your taxes increased a single dime," he said.
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