Bangalore, Feb 26: India Inc expressed its disappointment at the US decision of no 'tax breaks' to outsourcing American companies and said the new measure proposed by the United States President Barack Obama reeked of protectionism.
Obama declared the measure during his maiden address of the Joint Session of the US Congress on Tuesday, Feb 26. Experts are of the opinion that this trend of 'no outsourcing' may result in lead to lack of efficient workforce in the industry. They also accused US of 'protectionism' which is against 'globalisation.' Rajeev Chandrashekar, former FICCI President said that this move will effect both Indian and US companies.
The service industry in India contibutes about 51 pc of the country's GDP, with IT and IT-enabled services segment accounting for 10 per cent of the sector's output.