Despite the protectionist rhetoric in the US, Jack Markell, governor of Delaware, US, is convinced he needs Indian IT. He is on a 10-day visit to India, and will be one of the key speakers at the Nasscom India Leadership Forum 2013 in Mumbai this week. He is into his second term as chief executive of Delaware, one of the most business friendly states in the US. Excerpts from an exclusive interview to TOI:
In a recent address, you said, "It is difficult to watch the debates in Washington and be confident that we are up to the task. Delaware is not Washington. We will meet the challenges of the world we now live in." What are the challenges?
The biggest challenge is that the world we live in is different from the world we lived in 20 years ago. My job is to make sure I put more Delawareans back to work. I believe an important part of the answer is in being more effective to connect with the global economy. So I'm here in India in large parts to learn from the IT industry. I recognize Indian IT companies have more than doubled employment in the US from 57,000 to 1,15,000 over the last several years. That's significant growth. It's my job to make sure that people of my state are plugged in.
Don't you think the US should end its protectionist rhetoric?
Whether you're Democrat or Republican, what you care about is putting the people in your state back to work. With respect to Indian IT industry, the fact that they have doubled employment in the US is a positive. We have employers from different countries in our state. I think this kind of FDI and export opportunities are powerful.
Many companies choose Delaware as their corporate headquarters. Why?
Companies choose Delaware for three main reasons. We have well-understood corporate law in the country. Anybody who goes to law school in the US, when they learn about corporate governance , what they learn is the Delaware law. We have the best business court in the US -- The Court of Chancery.
It is recognized as the nation's pre-eminent forum for the determination of disputes involving internal affairs of Delaware corporations . The judges are extremely sophisticated, very timely in their response. I think lawyers who litigate the cases are aware that things will be done within 90 days. Trials take much less than that and if it's incredibly urgent, it's also heard within a day.
I often hear about a 30-day time frame. We also maintain our preeminent position in corporate governance.
Delaware also offers unique tax benefits to firms incorporated there. Is that correct?
On the capital gains piece, we piggyback on the federal tax policy. We have no sales tax or value-added tax and have very reasonable income tax. Many companies find it appropriate to put their intellectual property into a Delaware company. Our division dealing with corporations is extremely responsive. If you need your paperwork in two hours, you will get it in two hours. It's unlike other government agencies; we work in double shifts till midnight if required. Located halfway between Washington and New York, Delaware is known for its lowest average cost of doing business on the mid-Atlantic coast.
http://articles.timesofindia.indiatimes.com/2013-02-12/strategy/37057843_1_corporate-governance-delaware-law-jack-markell
In a recent address, you said, "It is difficult to watch the debates in Washington and be confident that we are up to the task. Delaware is not Washington. We will meet the challenges of the world we now live in." What are the challenges?
The biggest challenge is that the world we live in is different from the world we lived in 20 years ago. My job is to make sure I put more Delawareans back to work. I believe an important part of the answer is in being more effective to connect with the global economy. So I'm here in India in large parts to learn from the IT industry. I recognize Indian IT companies have more than doubled employment in the US from 57,000 to 1,15,000 over the last several years. That's significant growth. It's my job to make sure that people of my state are plugged in.
Don't you think the US should end its protectionist rhetoric?
Whether you're Democrat or Republican, what you care about is putting the people in your state back to work. With respect to Indian IT industry, the fact that they have doubled employment in the US is a positive. We have employers from different countries in our state. I think this kind of FDI and export opportunities are powerful.
Many companies choose Delaware as their corporate headquarters. Why?
Companies choose Delaware for three main reasons. We have well-understood corporate law in the country. Anybody who goes to law school in the US, when they learn about corporate governance , what they learn is the Delaware law. We have the best business court in the US -- The Court of Chancery.
It is recognized as the nation's pre-eminent forum for the determination of disputes involving internal affairs of Delaware corporations . The judges are extremely sophisticated, very timely in their response. I think lawyers who litigate the cases are aware that things will be done within 90 days. Trials take much less than that and if it's incredibly urgent, it's also heard within a day.
I often hear about a 30-day time frame. We also maintain our preeminent position in corporate governance.
Delaware also offers unique tax benefits to firms incorporated there. Is that correct?
On the capital gains piece, we piggyback on the federal tax policy. We have no sales tax or value-added tax and have very reasonable income tax. Many companies find it appropriate to put their intellectual property into a Delaware company. Our division dealing with corporations is extremely responsive. If you need your paperwork in two hours, you will get it in two hours. It's unlike other government agencies; we work in double shifts till midnight if required. Located halfway between Washington and New York, Delaware is known for its lowest average cost of doing business on the mid-Atlantic coast.
http://articles.timesofindia.indiatimes.com/2013-02-12/strategy/37057843_1_corporate-governance-delaware-law-jack-markell
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