US state woos IT players

Even as US President Barack Obama spoke of reducing tax incentive to US firms which offshore jobs, as he delivered his State of the Union address, Jack Markell, Governor of Delaware, was busy convincing the Indian IT services players to set up operations in his state.

Markell, visiting India after almost three decades, said his biggest agenda is to get Delawareans back to work. He feels the Indian IT sector’s success in creating jobs can be replicated in his state, too.

“We have 30,000 people in Delaware out of work and my agenda is to get work back to the state. The Indian IT industry has not only doubled employment for the country, but has also created jobs in the US. We wanted to learn from the industry," he told Business Standard.

At present, only Infosys has an office in Delware, but Markell is ready to roll out the red carpet for others to open larger delivery centres. This includes giving access to a large base of talent from the science and maths field, and getting rid of red tape in the process of setting up operations.

Markell also added that other than access to talent and ease of doing business, the state is also ready to give other incentives. “We do provide for a five-year loan, at low interest rates. This can be converted into a grant upon the achievement of meeting certain milestones. The amount is directly tied to the number of jobs created,” he added.

It is not just the Indian IT sector that the Delaware governor is busy wooing. On an 11-day visit to India -- he has already been to Delhi, Bangalore and Mumbai -- he has also met up with the small and medium enterprises that are interested in expanding their presence in the US.

When asked if the continuing protectionist rhetoric will come in the way of attracting the Indian IT industry, especially the constant tussle of getting the desired number of Visa’s, Markell said: “We are hoping that this is sorted out. We also think that there is a reasonable chance that we may be able to solve this issue by this year. We have seen people from both the parties who have been advocating about this. And this is not about just the IT industry. There entrepreneurs also want to come to the US and set-up businesses here and that is good for us.”

Markell had visited India in 1978. "Earlier this week when the economists in India said that they were disappointed that India’s growth will be only 5 per cent. But that is a growth that I would love to have. And I want my state to partner with such countries," he added.