Obama's vow to affect IT cos; India against protectionism: FM | business | Hindustan Times
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Obama's vow to affect IT cos; India against protectionism: FM

As US President Barack Obama vowed to eliminate tax benefits for American firms shipping jobs to foreign countries, India has said it is against any protectionist move as it would affect its IT industry.

business Updated: Feb 28, 2009 10:48 IST

As US President Barack Obama vowed to eliminate tax benefits for American firms shipping jobs to foreign countries, India has said it is against any protectionist move as it would affect its IT industry.

"The IT industry will be affected due to the impact of financial meltdown. Substantial number of Indian workers are there. We will have to address this issue.We are opposing protectionism, not only here but at every forum," Finance Minister Pranab Mukherjee told Karan Thapar in an interview for Devil's Advocate to be telecast on CNN-IBN.

"We can't just go for country specific solution for such problem.Issue is that our IT industry will be affected," he said.

Mukherjee added that the protectionism of any kind at this time should be avoided and Prime Minister Manmohan Singh also made it quite clear at G-20 meeting last year.

On February 26, Obama in his maiden budget speech said the US government would do away with tax breaks for firms outsourcing jobs to overseas destinations, including India. At the same time, the administration would be providing tax relief to 95 per cent of American working families.