CM to hold talks with IT industry

Karnataka chief minister B S Yeddyurappa today said he would soon convene a meeting with the captains of software industry to discuss the impact of US President Barack Obama’s new proposals to end tax incentives for American companies that had shipped jobs overseas like Bangalore, on the Indian IT industry.

“Obama has made this statement as part of his election promise to US citizens. We do not see any major impact on IT companies in Bangalore. This is only marginal impact on third party IT vendors. This is being done to disincentivise US companies. It will only end up in reducing the competitiveness of US companies when compared to European companies. Companies in India, especially Bangalore which have cost advantage, may not be affected very much. However, we are planning to have a meeting with leaders of software industry to consider their concern and this requires a national discussion with all concerned companies that may be affected and the Central government. We will extend any help required by the industry,” he told reporters.

Yeddyurappa said he would hold detailed discussions with the next prime minister on the impact of US government proposals on the Indian IT sector and work out what kind of precautions needed to be taken to protect the interests of IT industry. He assured that the government is with the industry in this hour of crisis and extend all possible help to them to overcome the crisis situation.

“Very soon I will invite all the captains of IT industry in Bangalore and seek their opinion and suggestions to tackle the crisis. More than this, the Central government needs to take it very seriously and a national debate is necessary on this matter. The Centre should act immediately in this direction and ensure that IT companies from India and their employees jobs are protected,” he told reporters.

Yeddyurappa said the country should learn a lesson from this and prepare the Indian IT industry to stand on its own and not depend on any particular country for survival in the long run.