Stepping up his campaign against outsourcing, US President Barack Obama on Friday asserted his administration will offer tax benefits only to firms that create jobs in the country, a move that may hit Indian IT firms in a big way.
"We believe on tax breaks for firms that create jobs in the US. So we are beginning to do that," Obama said. His remarks came on the heels of Ohio's ban on outsourcing, a development that has raised concerns in India.
All firms that would innovate in the US would get tax breaks, Obama said. Though the US economy is growing again, progress is "painfully slow", he said, insisting that his strategy for recovery was moving the country in the right direction.
Obama said the US, which lost 8 million jobs during the recession, must stay competitive with Asian nations. He also said that before he became President, four million people lost their jobs. The number rose to eight million during recession.
Obama's increasing pitch against outsourcing came amid indications that the issue could become a hot topic in the run-up to the November Congressional polls.