Indian IT industry unperturbed by Bangalore-Buffalo remark by Obama

Bangalore, May 7 (ANI): Undaunted by US President Barack Obama's Bangalore-Buffalo remark and proposal to extend tax benefits to those creating job opportunities to Americans, experts in the Indian IT industry said the comments had nothing to do with outsourcing or with India.

It is an instance of Obama's views being misinterpreted, said Som Mittal, President of Nasscom, while speaking to media persons here on Wednesday.

It may be recalled that Obama had vowed on Monday to overhaul tax policies vis-'-vis shifting of US jobs overseas and allowing wealthy people to evade taxes using offshore accounts.

"I think it's not an issue of India. It is about how US companies are there, how the US subsidiaries are structured and what is the taxation that US has followed over the years. So it's got nothing to do with India or somewhere. I think even this mention of Buffalo and Bangalore. I think its being misinterpreted," Mittal said.

"President Obama actually said that the additional taxes that he would get he is going to invest some of that money to do research," Mittal added.

Mittal further added that the Indian IT industry provides solution so as to enable the United States to become more competent.

The total generation of annual revenue from IT is 40 billion US dollars which is 5.8 per cent of the GDP.

Bangalore alone is a host for 750 thousand employees who are directly or indirectly dependent on IT outsourcing.

As noted by Kartik Shekhar, General Secretary, Union of ITES Professionals (Unites), approximately 14 billion dollars is generated as revenue annually.

"Actual on ground what's going to happen will actually be known in times to come. But as news this is a wrong time for India. We are trying to recover from recession showing slow indicators coming up. When these indicators come up then such bad news come up dropping sentiments. So it is more on sentiments rather actual realities," said Shekhar.

Further he added to say that all these will now be a far away dream for some IT experts. Yet some still are hopeful that this will not happen as companies will arbitrate with the US President. (ANI)