Hailing the contribution of Indian IT companies to the American economy, Commerce Minister Nirmala Sitharaman Monday 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.