Obama's plan not to disturb Indian IT industry

New Delhi: U.S. President Barack Obama's plan to stop tax breaks for U.S. firms that ship jobs overseas will not have any impact on Indian IT exports industry, according to IT analyst firm Gartner.

Talking to PTI, Gartner Senior Research Analyst Diptarup Chakroborty said, "There is no need for panic. Even if tax breaks are taken away, the US firms have to outsource because that makes business sense for them. If the tax breaks are taken away, it is not going to impact the Indian IT industry adversely. With the global economy looking up, a lot of emerging markets are opening up. The contribution from those markets is going to offset the impact of tax breaks if any."

The IT regulatory body Nasscom has also sought to downplay Obama's plan to slash tax breaks for companies shipping jobs abroad, saying the real worry is "protectionism" and not tax breaks. Nasscom Vice President Ameet Nivsarker said, "I think the concerns that we have is about indirect protectionism. I don't think tax break issue is really the one which is important for us. Obama's comment was not related to outsourcing. It's about US companies operating in regions where they get tax benefits."

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