'No' to Bangalore, 'Yes' to Buffalo -- Barrack Hussein Obama

[salman nedian]

I was talking to my American client yesterday and he said that only public companies will be affected with this decision but I think we need to improve our skills to compete the whole world and specially countries like India and China in IT and telecom sector.

 

[notsuperstitious]

But on real topic.....
people in US are disconnected from these back door and exploitive practice by indian business. Now Americans are paying more attention and they should start campaign against these exploits.

Exploitative practice of what??? IBM in 2007 had 74,000 employees in India. Accenture has more staff in India than the US. They are doing business, not selling snake oil, so you won't understand.

 

[godsavetheworld]

Honeywell Says Committed to India, despite Obama's stand.

By RUMMAN AHMED and C. R. JAYACHANDRAN
BANGALORE -- Honeywell International Inc. said Thursday it is committed to India as one of its manufacturing as well as research and development hub despite Washington's plans to change tax rules related to U.S. companies' overseas operations.

"We are committed to India as a manufacturing location, export hub and most importantly, as a center of engineering and R&D excellence," Chairman and Chief Executive Dave Cote said on the inauguration of Honeywell's second research and development center in India's technology hub, Bangalore.

"I get extremely worried when I hear any kind of discussions about protectionism," Mr. Cote said, referring to U.S. President Barack Obama's tax proposals.

"I don't know what the shape of this will be in the end. Anything that creates any kind of protectionism, anything that stops the globalization activity, will be harmful."

Mr. Obama vowed Monday to push forward with his plan to curb some overseas tax advantages enjoyed by multinationals under the U.S. tax code. "It's a tax code that says you should pay lower taxes if you create a job in Bangalore, India, than if you create one in Buffalo, New York," Mr. Obama said.

While the U.S. plans to tax profits of American companies no matter where they are earned, most other developed countries only tax the activity that occurs within their borders.

The U.S.-based maker of jet engines and home-security products has invested $50 million to establish the new Indian facility, which will accommodate 3,000 people this month.

Honeywell now has five manufacturing facilities in India. The company's first research and development center is also located in Bangalore.

"Our presence here has grown from 1,000 employees in 2002 to 10,000 today," Mr. Cote said.

Honeywell had in February said it expects annual revenue from India to almost double to $1 billion in three years.

Asked whether the global economic slowdown will hamper its business prospects in India, Cote said, "I will not back off on our possibility of our being there (to post $1 billion revenue)...but who knows how things will go."

He said the company is aggressively pursuing a potential contract in India to supply fighter-jet engines.

A company executive had said earlier this year it expects India to invite bids for replacing the engines of 125 Jaguar jets in the second quarter of the current year.

India's deal will likely be for 280 engines, including spare engines, for the twin-engine Jaguar combat jet. It is likely to be finalized by the fourth quarter of 2010.

Honeywell Says Committed to India - WSJ.com

 

[godsavetheworld]

Indian members pretended as if nothing will happen to Indian employees. Then why do the Indian political leaders take this issue seriously? Is it for election? Is that so simple? Can India dictate the President of the world's super power?

Indiatimes - Infotech

BJP: No outsourcing, no nuclear deal

NEW DELHI: A BJP-led government will not implement the nuclear deal with the US if the Barack Obama administration withdraws tax incentives to companies outsourcing works, a senior party functionary said today.

"We will tell the Americans very clearly that we will not implement the Indo-Us nuclear deal, if this is the policy (removal of tax cuts for those outsourcing), you (will)follow with a friendly country like India," former Finance and External Affairs Minister Yashwant Sinha told PTI in an interview.

He said the US cannot be using all its laws against India and expect it to go ahead and support them in everything.

"Why should India buy nuclear reactors from them, create employment opportunities in the US. If it (US) wants to extinguish employment opportunities in India by theses methods, why should we then generate employment for Americans by importing nuclear reactors from them," said Sinha, whose party has said it will renegotiate the deal if it comes to power.

When asked if the BJP will rework the deal, Sinha said for the time being, it should be made very clear to the United States that there will be no question of implementing the nuclear deal in the current scenario. He said the deal could be considered on the basis of reciprocity.

"The Nuclear deal is held out as a great piece of the friendly relations India has with US. You (the US) are looking at your own interest. So we will not care if you are a friendly country or you are not so friendly. That is what reciprocity means. Then we will consider," Sinha said.

In a decision that could harm outsourcing of jobs to India and other countries, US President Obama on Monday had proposed removal of tax incentives to American companies shifting jobs abroad.

Sinha asked if India should take the US stand on outsourcing lying down. "Look at what Obama is doing. First the H1B visas and now the taxation proposal that they will not give tax benefits to companies which outsource jobs outside. This is directed at India and the formulation is Buffalo and not Bangalore. Should India take it lying down," Sinha said.

Hitting out at the loopholes in the country's corporate tax code, President Obama had commented, "It’s a tax code that says you should pay lower taxes if you create a job in Bangalore, India, than if you create one in Buffalo, New York."

The Indo-US nuclear deal had made the left parties withdraw support to the UPA government.

WHAT AN INCREDIBLY STUPID DECISION, SCRAPPING THE NUKE DEAL WILL ONLY HELP OUR ENEMIES... WHO IS GONNA KNOCK SENSE INTO BJP?

 

[duhastmish]

India already got what it needed from americans - GOOD infrastructure for - I,T.
more than 60% of Indian it depend on non american firms, And for those 40% - they will just go bankcurrupt - because noway you can get a MBA- MUCH more qualified than their mba- workign for meager - 2000-3000$ per annum. rather - we can use this brain production initiated by american in to any other field. Indian economy need american economy - Way less than what American need out of Indian economy. i think most economist will know it.
and for communist and other - uneducated people( in relevant field) who just bash India without any knowledge - You can see the impact of this statement on stock market of IT share during those 6 days - 2 days before the statement and 4 days after statement .
the market have gone up.
lol-

These are just statement by a politicians who are just same everywhere- holds not much ground, He also said alot about pakistan too - so communist and these fanboys must also believe those comments ay?

 

[rahgup]

Without benefiting Buffalo, there is no need for Bangalore. This is what I believe the signal Mr. Obama is sending to American people, not to Indians.

With a good regulation in place, globalization will be stopped, but will be fairer.

Perhaps true that American cooperates will thus earn less $, but American people will put a little bit more into their pocket or pay less tax.

Haha, good one. The world will be fairer? Every equally educated Indian, Pakistani, Bangldeshi has the right to earn the same amount of money as any european/american. You people have looted our money through colonialism and now try and act as if being rich is your birth-right. 400 years ago China and Indian subcontinent controlled 50% of the world GDP and the world would return to than in another 50 years.

And remember the backlash, If India and China were to kick american companies out, what will be your state?

 

[Patriot]

Haha, good one. The world will be fairer? Every equally educated Indian, Pakistani, Bangldeshi has the right to earn the same amount of money as any european/american. You people have looted our money through colonialism and now try and act as if being rich is your birth-right. 400 years ago China and Indian subcontinent controlled 50% of the world GDP and the world would return to than in another 50 years.

And remember the backlash, If India and China were to kick american companies out, what will be your state?

Well Said..It will not only effect India's economy but Pakistan's Economy too as outsourcing is growing here day by day.

 

[Durran3]

I wrote a blog the other day on Free Market Capitalism i'll post it here some of you might find it interesting.. i wrote this back on March 31st..

There has been a lot of outcry from Wall Street against Geithner’s economic plan and the amount of regulation that is supposedly being put into place by the White House and the Treasury department. Now it is understandable that many people are ticked of on how Wall Street has performed over the years with greed, bad capitalism and irresponsibility due to which now people are asking for more regulation, but lets hold on a second and go back twenty years and see how the US and the World in general have performed under free market capitalism.

Global trade and globalization in general has helped more than 350-400 million people get out of poverty line where a lot of the contribution has been made by the technology industry but we won’t hear that from the so called ‘progressive’ leaders. Living standards have drastically been increased especially in places like India, Panama, Columbia and many developing countries around the world. Humanitarian conditions have drastically improved over the years and more people are now becoming responsible with regards to labour relations, better working conditions and with the use of technology provided by the United States not only helped developing countries grow but allowed for many US companies to grow as well, the last 20 years are proof of that.

Now it’s understandable that when economic turmoil hits people and countries tend to look inwards but it’s up to Obama to overcome that and look more towards global trade because that itself will help the United States in the long run. I suggest people watch the documentary called ‘Bombay Calling’ which is a documentary about telemarketers in Mumbai India and how globalization has effected them, for the better that is.

I personally think that pumping trillions of dollars in to the money supply would only allow for companies who have performed so terribly stay in tact and make the same mistakes that put the economy in this mess in the first place, while at the same time allowing them, under the so called ‘contractual obligations’ to pay their CEO’s and executives tremendous amounts of bonuses which would more or less come from tax payers bailout money. If you make a mistake, you pay for that mistake, and that’s how things work naturally. You can’t wake up the next morning and say ‘hey we just went through a terrible time, but let’s just forget about it and start new’. It does not work that way and you have to pay for the mistakes you have made and at the same time take the pain for being a complete bunch of irresponsible hacks.

Some banks are not even selling foreclosed homes simply because they want to show a higher number of toxic assets on their balance sheets for more government bailout funds. Why not bail out Vivid as well so we can have Briana banks in High definition Bluray, after all **** is a 32 billion dollar industry which happily pays taxes.

The argument that the White house makes is that Banks need capital so they can lend out money to other businesses which is understandable and is a very important concern, but the fact of the matter is all major banks in the US as of now are ‘Bankrupt’ and are overvaluing their assets above the current market value, why not just sell these assets at subsidized prices or allow the Federal Deposit Insurance Corporation to allow the existing bondholders to help them clean up.

Here’s why globalization and free market needs to exist. When major companies around the world in emerging markets and developing countries do well and need the technological expertise and ideas they will ask the US for help and with millions and millions of people around the world who start getting jobs in their home countries they would than require their government for stability and a better economic environment and thus resolve political conflicts in a much more sophisticated step by step procedure which will allow for more self empowerment, new democratic ideas. A simple example is how Photoshop has redefined the graphic industry around the world and allowed people to open many small businesses for themselves, remember small businesses is what makes and breaks a country and where 90% of the commerce activity takes place unless and of course you live in a communist country.

 

[jeypore]

^^^

Nicely put!! The banks should have been penalized for there greed and lethargicness (housing will never go down). You very well know that one of the reason for bail out was to put ear marks in the bill also, so it benefited these politicians. It is a large price for the future, which Americans will have to pay with sweat and blood.

 

[Communist]

Now Indians are going to retaliate a US sovereign move!!!

'India to retaliate US protectionism'- Software & Services-News-Indiatimes - Infotech

BANGALORE: IT and BPO industry apex body Nasscom warned that any protectionist move by the US that adversely impacts the domestic outsourcing industry might trigger retaliatory measures by India.

"This war could get started off (if there is any protectionist move in US, it could lead to India coming out with counter protectionist measure)," National Association of Software and Services Companies President Som Mittal told reporters here when asked about the US move to end tax breaks for US firms which outsource jobs, which was one of Obama's major election promises.

Last month, President Barack Obama had unveiled new proposals to do away with tax incentives for US companies that give away jobs to overseas countries like India. The US move will hit some 10 lakh Indian IT professionals and a good chunk of the country's BPO industry.

"So, for us, it's important that we are sensitive during this period," Mittal said. He said (in case of US's protectionist measures) Indians "are pretty okay coming back to India and work here as there are opportunities in this country.”

Mittal also said that "there are enough people within the system" in the US and the UK who believe that once any protectionist measure is taken, "it does not stop there." He noted that India has opened up its market. "Today, we are one of the largest buyers of defence planes," he said without elaborating.

 

[jeypore]

And what are the retaliation moves by India:

So, for us, it's important that we are sensitive during this period," Mittal said. He said (in case of US's protectionist measures) Indians "are pretty okay coming back to India and work here as there are opportunities in this country.”

and

He noted that India has opened up its market. "Today, we are one of the largest buyers of defence planes," he said without elaborating.

What Mr. communist you thought India was going declare war on US!!!!

 

[Communist]

And what are the retaliation moves by India:
and
What Mr. communist you thought India was going declare war on US!!!!

When did I say Indian retaliatory moves by asking the Indians to come home back are bad? Well, even if the Indians are asked in reality, it is unlikely that they would come back. Favicol glue factor is there.

Anyway, even in my dream I cannot see India declaring war on US. But if US cannot be blamed for her protectionist moves. Self protection is universally acceptable. US' self protection does not favor India, and its is the reason behind the Indian resentment.

 

[Spitfighter]

When did I say Indian retaliatory moves by asking the Indians to come home back are bad? Well, even if the Indians are asked in reality, it is unlikely that they would come back. Favicol glue factor is there.

Anyway, even in my dream I cannot see India declaring war on US. But if US cannot be blamed for her protectionist moves. Self protection is universally acceptable. US' self protection does not favor India, and its is the reason behind the Indian resentment.

Its a two way street my friend, if they want us to open up our markets, then we'd expect them to do the same. The US trades with other countries besides India, so any decision will likely affect others too, like China.

Obama's speeches sound great, but that's where it stops. The world is just too integrated for the US to pull even half the crap he's talking about. Just the other day the Germans and Japanese were warning them against any such moves. If American companies feel like playing ball then they need to shape up, case in point GM.

 

[Communist]

Its a two way street my friend, if they want us to open up our markets, then we'd expect them to do the same. The US trades with other countries besides India, so any decision will likely affect others too, like China.

Obama's speeches sound great, but that's where it stops. The world is just too integrated for the US to pull even half the crap he's talking about. Just the other day the Germans and Japanese were warning them against any such moves. If American companies feel like playing ball then they need to shape up, case in point GM.

Yes from an Indian point of view whatever logic you provided is correct. Anyway, we should wait and see the course of events.

 

[Spitfighter]

Yes from an Indian point of view whatever logic you provided is correct. Anyway, we should wait and see the course of events.

Here's some good news, I'm sure you'll appreciate it.

(Posted by Screaming Skull in the Indian Economy section)


Now US pitches for 'Boston-Bangalore' like bilateral ties


18 Jun 2009,

WASHINGTON: Pitching for increased economic ties between India and America, US Secretary of State Hillary Clinton has called for "advanced" linkages similar to the existing ones between "Manhattan and Mumbai or Boston and Bangalore".

Speaking at the US-India Business Council's Synergies Summit here, Clinton also asserted that America would help in contributing to the prosperity of the Indian economy.

Interestingly, the statement comes just weeks after President Barack Obama's anti-outsourcing pitch, asking American companies to create more jobs in the US than foreign countries.

Unveiling new proposed tax reforms, Obama had said, "It's a tax code that says you should pay lower taxes if you create a job in Bangalore, India, than if you create one in Buffalo, New York."

Terming the blooming partnerships between the two countries as "exciting", Clinton asserted that India's growing economic prowess is recognised the way, the law of gravity is accepted by people.

"We need bilateral cooperation between our governments to catch up with our people-to-people and economic ties.

"We need to make sure that the partnership between Washington and New Delhi, our capitals, will be as advanced and fruitful as the linkages that already exist between Manhattan and Mumbai, or Boston and Bangalore," Clinton said yesterday.

The trade between India and the US is worth over USD 43 billion and has more than doubled since 2004.

"We are committed to working with India to see India's economy continue to prosper, to create more economic opportunity, rising incomes," she said.

Noting that the word about India has already spread, Clinton said people are aware about the kind of business and investment opportunities in the subcontinent.

"People know what kind of business and investment opportunities are there. India's growing role in the global economy is accepted the way we accept the law of gravity. And the partnerships that are blooming at all levels of our societies are indeed exciting," she said.

According to Clinton, American views India as one of the few partners worldwide who would help the country in shaping the "21st century".

Referring to apprehensions in the two countries regarding job losses or falling wages, she said India and the US should work out the differences by focusing on shared objectives.

"Some Americans fear that greater prosperity and partnership with India will mean lost jobs or falling wages here in the United States. Some Indians believe that closer cooperation with us runs counter to their nation's very strong tradition of independence.

"... as the oldest and largest democracies in the world, we should work through any issues in our relationship and differences in our perspective by focusing on shared objectives and concrete results," she pointed out.