Indian tech industry contributed nearly 411,000 jobs to the US economy this year and USD 20 billion in taxes between 2011-15...
Indian tech industry contributed nearly 411,000 jobs to the US economy this year and USD 20 billion in taxes between 2011-15 when American firms leveraged Indian talent to provide innovative and cost-competitive solutions to boost their global market share, a new report said today.
The NASSCOM report said Indian tech industry contributed more than USD 375 million to the US Treasury between fiscal year 2011-2015, and also helped America secure its borders.
The report ‘Contributions of India’s Tech Industry to the US Economy’ was released by Union Commerce Minister Nirmala Sitharaman here ahead of the first Indo-US Strategic and Commercial Dialogue.
“Leveraging Indian talent, American firms have been able to bring better, innovative, cost-competitive solutions that have helped improve their global market share and bring products with shorter production cycles,” Sitharaman said.
“This very timely report focuses on that part of the India-US bilateral equation, illuminating many of the benefits that Indian IT organisations bring to the US in period covered by the study,” she said.
These benefits included USD 2 billion in investments, hundreds of thousands of new jobs for Americans, USD 20 billion in taxes, and more than 120,000 American lives touched through philanthropic work supported by Indian organisations, she said.
National Association of Software and Services Companies (NASSCOM) president R Chandrashekhar said during the period covered by the study “Indian tech industry alone has invested over USD 2 billion and paid over USD 20 billion in US federal, state and local taxes -â€“ while also supporting 410,000 plus jobs in America.”
He said this is only part of what India’s IT sector brings to the equation. There is also the economic value of the operational support provided to over 90 per cent of Fortune 500 firms and thousands of other American businesses.
Indian IT firms make their US customers more innovative, competitive, primed for new market, and eager to expand jobs. American customers benefiting from these services encompass every corner of commerce and size of business, he said.
According to the report, California, Texas, Illinois, New Jersey and New York are the top five American states where Indian IT companies have supported direct jobs.
“Indian tech industry paid over USD 20 billion in taxes to the US treasury between FY 2011 to FY 2015E,” it said.
Indian IT companies not taking away jobs from US: Nirmala Sitharaman
Hailing the contribution of Indian IT companies to the American economy, Commerce Minister Nirmala Sitharaman today said that it was a “myth” that these firms were taking away jobs from the US, saying they generate lakhs of jobs and pay billions of dollars in taxes.
“Indian IT industry has definitely made a big contribution to the US economy,” Sitharaman told a Washington audience on the occasion of releasing a report on contribution of Indian IT companies in the US brought out by NASSCOM.
“There has always been a popular apprehension that Indian IT industry benefits from the United States and takes away job from the US,” she said, referring to the report which said Indian tech industries this year supported an estimated 411,000 jobs in the US and have contributed federal tax of to the tune of more than USD 20 billion in the last five years.
“So they invest, pay tax to the US and busts the myth that jobs being taken away from the US,” Sitharaman said.
In her remarks, Sitharaman highlighted the important role of the Indian IT companies on corporate social responsibilities (CSR).
“If u take the three top Indian companies, the role by them played in CSR is just unbelievable,” she said.
It is important to put on record that Wipro has spent USD 8 million to train teachers in the US in the field of Science, Technology, Engineering and Maths, she said.
Infosys, she noted, has spent USD 6 million for creating facilities for expanding computer education.
And TCS has just announced a grant of more than USD 30 million towards a technology center in Carnegie Melon University, she said.
“These are examples that show that Indian companies do bring in something knowledge, create job. It is absolutely useful for public discourse. It assures the American company that they add to the US economy and do not take away jobs in India,” Sitharaman said.
Indian Ambassador to the US Arun K Singh said Indian IT companies are playing an important role in the leadership role that the US has in the field of innovation.
The US is a world leader in innovation, and Indian companies through their work are contributing to profitability, competitiveness and innovation being done by US companies, he said.
According to the report, India-based IT services companies paid more than USD 20 billion dollars between 2011-2015 in US federal, state, and local taxes.
They have also paid USD 375 million in 2011-2015 to the US Treasury including funds to help America secure its borders.
This is being paid for visa application fees for the qualifying firms.