Indian IT firms paid $22 billion in US taxes, says NASSCOM

Indian IT firms paid $22 billion in US taxes, says NASSCOM

IT firms invested over $2 bn and paid over $20 bn in US federal, state and local taxes, while also supporting 410K plus jobs in America, said the NASSCOM report.

Indian IT firms paid $22 billion in US taxes: NASSCOM (Photo: Reuters) Indian IT firms paid $22 billion in US taxes: NASSCOM (Photo: Reuters)

According to the latest NASSCOM report, Indian technology industry contributed nearly 411,000 jobs to the US economy this year and $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.

The NASSCOM report said Indian technology industry contributed more than $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 in Washington 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 $2 billion in investments, hundreds of thousands of new jobs for Americans, $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 technology industry alone has invested over $2 billion and paid over $20 billion in US federal, state and local taxes - 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 technology industry paid over $20 billion in taxes to the US treasury between FY 2011 to FY 2015E," it said.