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December 02, 2020

Obama’s Taxes Worry India

Many in India are not too pleased with President Barack Obama’s proposed new corporate tax system. Many in India claim that the reforms are designed to limit India’s ability to outsource.

Numerous American jobs have been moved to India in recent history due to cheaper labor costs. However, Obama’s plan calls for the amount it costs to “create a job in Bangalore, India,” to no longer cost less “than if you create one in Buffalo, New York.”

Part of the action calls for the removal of deductions for American corporations for investing in subdivisions located in foreign nations.

Tens of thousands of American employees are located in Indian subdivisions where they mainly work in customer service. Furthermore, even more workers are hired in India via the nearby technology companies and outsourcing companies as well.

In addition, as India’s economy is quickly growing, as well as their middle class, numerous American organizations are adding more sales, marketing, and distribution divisions in the nation.

Many in India fear that Obama’s tax ruling will reduce the amount of outsourcing to the country. However, according to experts, the amount of profit that is gained from the reduced labor costs is still going to be enough to keep American companies interested in outsourcing to India.

Currently, American companies are responsible for 60% of the 2.2 million technology and outsourcing employees. The new tax revision will not undo the successes of India’s economy, nor will it hinder it in the future, it is simply for American government revenues to support the United States of America in the current financial crunch.

About Mark Ryabtsev 329 Articles
Mark Ryabtsev is head writer for He stays up to date on all Obama news and brings you the most important issues.

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