Meeting one of his major election promises, Obama yesterday announced the end to years of tax incentives to the US companies, which create jobs overseas.

He said the White House plan would save taxpayers USD 210 billion over the next decade. “It's a tax code that says you should pay lower taxes if you create a job in Bangalore, than if you create one in Buffalo, New York.”

Incentives would, instead, be given to those creating jobs and enhancing competitiveness in the US. The end of tax incentives for outsourcing would have a huge impact on the Indian economy, where US companies have been outsourcing their work.

Are Indian IT majors worried? On next page..