Archive for June 13th, 2009

US protectionist move may lead to countermove: Nasscom

US protectionist move may lead to countermove: Nasscom

US protectionist move may lead to countermove: Nasscom

NASSCOM, the IT industry body, said that any protectionist move by the US that adversely impacts the domestic outsourcing industry might result in triggering the counter protectionist measures by India.

This war could get started off.

If there is any protectionist move in the US, it could lead to India coming out with counter protectionist measure, NASSCOM President Som Mittal said in Bangalore.

Mittal said that no US lawmaker would oppose any legislation aimed at saving American jobs.

He also said that NASSCOM is putting forward a perspective that Indian outsourcing companies are part of the solution and not the problem.

US protectionism targeting Indian outsourcers may be met by retaliatory measures such as blocking access to Indian markets as per Nasscom.

Describing the US tax system as “broken”, US President Barack Obama said earlier that it’s a tax code “that says you should pay lower taxes if you create a job in Bangalore, India, than if you create one in Buffalo, New York”.

Though the changes proposed to the tax code are not likely to impact the Indian outsourcing industry, the statement by Obama has been widely interpreted in India as targeting the country’s large outsourcing industry which gets over 50 percent of its revenue from the US.