Washington, Feb 25: In his first formal address to the joint session of the United States Congress, President Barack Obama promised the nation that the $787 bn economic rescue package will create about 3.5 million jobs in the next two years. He also announced his plans to cut tax there by reviving the ailing economy.
Obama said that most of the jobs will be in private sector. The President went on to say that the flow of credit is the 'lifeblood of economy'. He assured the Americans that their money is safe in US banks. Obama also announced a tax cut to be effective from Apr 1, 2009.
Giving a jolt to the Indian IT and BPO industry, Obama made it clear that there will no tax concession for the US companies that outsource their jobs. This in-turn will reduce the prospect of Indian and other South Asian outsourcing sector.