Chennai, May 9 (Inditop) Prime Minister Manmohan Singh Saturday said the US will soon realise the advantages of outsourcing business activities to India.
“Governments take certain postures and learn fast. Such measures will affect the American corporations,” Manmohan Singh said.
“I am confident that the US government will realise this.”
He was responding to a question on India’s reaction to the US government’s proposal to cut down tax incentives to companies there if they set up operations overseas.
President Barack Obama early this week said the current US tax system gives America-based multinationals shipping jobs to places like India an unfair advantage over domestic rivals, He announced plans to reduce tax breaks for them.
“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,” Obama said Monday spelling out his proposals to close corporate tax loopholes and crack down on overseas tax havens.
