Good sense has prevailed: India Inc

BANGALORE: India Inc was understandably happy with the rejection of the US bill that sought to deny tax breaks to American companies moving jobs offshore. The bill would not have had any direct impact on Indian companies. But the spirit of the rejection was one of "anti-protectionism'' . And that's good news for Indian businesses that make their money from US offshoring. Interestingly , the defeat of the bill comes a month prior to Obama's visit to India, and a week after a Nasscom delegation visited the US and lobbied with key Congressmen and corporations. "We welcome the move," said Nasscom vice president Ameet Nivsarkar. "We are happy that good sense has prevailed."

Avinash Vashistha, CEO of globalization advisory firm Tholons, said the Anti-Outsourcing Bill was merely an "election support" move (the US is going into a major mid-term Congressional election in November ). The bill, he said, did not have support from American businesses. "In this world of increasing globalization , jobs and businesses will move where they are best serviced in terms of quality and cost.

With 80% of America's GDP being services and these very services getting more and more globalized , the US should embrace and promote globalization and not play on anti-outsourcing election rhetoric," Vashistha added. Karthik Ananth, director in R&D and outsourcing consulting firm Zinnov Management Consulting, said the blocking of the bill bodes well for Indian industry.

However, nobody is rejoicing too much. "Such bills will keep popping up as long as unemployment in the US remains high," said Nivsarkar . Ananth said the antioffshoring rhetoric was unlikely to ease at least till the November elections.