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Obama tax move won't impact Indian firms, Murthy to president
May, 09th 2009

Indian IT firms would not be impacted by the tax reform proposal of US President Barak Obama, Infosys Technologies chairman and chief mentor N.R. Narayana Murthy told President Pratibha Devisinh Patil on Friday.

"Obama's tax proposal will not impact Indian firms as they already pay taxes in the US. It is only American firms operating in India who would have to repatriate taxes on profit earned outside the US when it becomes a law," Murthy told Patil at an interactive session at the Infosys campus.

The president, who is on a three-day visit to Karnataka since Thursday, paid a visit to the sprawling Infosys campus housing its corporate headquarters on the outskirts of this tech hub.

When the company's top management made a power-point presentation on its global operations during the interactive session, Patil also asked Murthy how the Indian IT industry could cope with the pressures of global recession and lower technology spending.

Murthy replied that the industry could sustain the growth momentum by expanding into the domestic market and driving the growth rate with innovation and product development.

"Indian firms will have to safeguard their IPRs (intellectual property rights) to move up the next level of value chain and compete with their peers in a global market," Murthy argued.

The president also sought information on the IT bellwether's contribution to society as part of its corporate social responsibility.

"The president was keen to know about our guiding spirit and principles that drive Infosys' growth in the global market," Murthy told reporters later.

President Patil planted a sapling in the Infosys campus and went on a buggy ride to see for herself the company's state-of-the art facilities.

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