Commerce and Industry Minister Anand Sharma on Wednesday expressed hope the US administration's proposal to end the tax incentives on outsourcing companies will not impact the growing bilateral trade relations between the two nations.
Mumbai: Commerce and Industry Minister Anand Sharma on Wednesday expressed hope the US administration's proposal to end the tax incentives on outsourcing companies will not impact the growing bilateral trade relations between the two nations.
"We will have to look at the details as to what is being proposed. We hope that nothing will be done by the US government which will adversely impact the ongoing partnership, particularly in the technology sector," Sharma told the Nasscom summit here.
He further said, "Without getting into the specifics clearly, I would say that in on Wednesday's time what is expected from governments, nations and leaders is to bring down the existing barriers and not to allow new barriers of protectionism to come up, which will be counter-productive for the global economy, as they deepen the recession and delay the recovery."
On the impact of the proposed measures on the IT sector, which draw nearly half its income from the American markets, Sharma said, "We have conveyed our concerns very clearly to the US and we shall continue to do what is expected of us to ensure that our IT industry grows from strength to strength and also the movement of professionals and their right to go and work wherever companies are located is fully respected."
Yesterday, US President Barack Obama, fighting hard to bring back historically high unemployment in a weak economy, said: "...The American people deserve a tax code that helps small businesses spend less time filling out complicated forms, and more time expanding and hiring."
"...A tax code that lowers incentives to move jobs overseas, and lowers tax rates for businesses and manufacturers that are creating jobs right here in the United States of America. That’s what tax reform can deliver. That’s what we can do together," he added.