The Indian information technology (IT) industry is a key driver of India’s economic growth and has demonstrated robust performance over the last two decades. The IT industry — including both software exporters and business process management firms — employs around 23 lakh people in the country. With the formation of the new government, industry body Nasscom expects a brighter future and more support from it. In an interview with Business Line, R Chandrasekhar, President, Nasscom, shares more thoughts. Excerpts:
What are the expectations of the IT industry from the new government?
Nasscom will work with the new Government to build policies and programmes that enable the industry play a global role, as well as in the development of the country. 2014 has brought optimism for the industry with improvement in the economic climate and expected rise in technology spending. Given the current business environment, Nasscom has expectations from the Government at three broad levels. The first is the introduction of policy measures to create an ecosystem that nurtures young businesses and accelerates their growth. Second, regulations that will help reducing business friction and introduce policies that brings about an ease in processes of investment, IPO and taxation. The third will be to focus on building new markets and expanding existing markets; laying emphasis on skill development for creating workforce that can match the requirements of the industry.
Going forward, e-Governance will be the most effective tool that can bring minimum government and maximum governance as it is effective and economical. The use of IT can put India on the road to fast and inclusive growth and also empower the youth of the country.
The larger expectation from the government is to make India more digital, which is a knowledge-based society and economy where IT will be the growth engine of the New India.
How different do you expect the BJP government to be compared to the UPA as far as industry views are concerned?
The IT industry has enjoyed phenomenal support across parties at the Centre and at the State. However, given the historic mandate that the BJP has got from the electorate and the agenda of growth, our expectations would be to fast track new initiatives, be consistent in terms of policy, and reduce irritants to make the process of doing business easy. Narendra Modi in his speech at the Nasscom Leadership Forum had stated that IT (India Talent) + IT (Information Technology) = IT (India Tomorrow), and we expect to work with him on implementing this vision.
Do you think the government should be promoting STPI which is not prevalent now?
The STPI scheme does exist, but is not attractive for the industry as the profit-linked tax incentives have been withdrawn. The STPI scheme has played a phenomenal role in building the export-led technology and services industry in India. While the stated intent was to do away with profit-inked incentives, it is imperative that SME and start-up companies are supported through a holistic scheme.
Can we have an STPI 2.0 scheme that is applicable for SMEs and start-ups and provides an enabling environment through a one-stop window for all necessary approvals and compliances; seed funding support; benefits and incentives for creating employment and IP; and market access to global and Indian markets?
Any incentive for the BPO/ BPM sector such as new SEZs?
SEZ policy has been built with the right intent to provide a conducive framework and propel exports from India.
However, imposition of minimum alternate tax and other restrictive policies has diluted the impact of SEZ. We would urge the Government to mandate the SEZ scheme to be implemented according to its original provisions and also permit ‘virtual SEZs’ to come into operation within the scheme.
Apart from promoting new entrepreneurs (start-ups) by industry bodies or companies, do you think the government should come out with a policy for such innovators?
Technology start-ups and SMEs in the IT sector today could potentially develop disruptive products and services. They are the next generation of IT-driven innovation and can tailor solutions to Indian needs.
The Government should ensure that the policy and regulatory environment encourages and attracts technology start-ups and SMEs to set-up business and operate in India. The existing business environment is indifferent and stacked with regulations unfavourable to entrepreneurs and tech SMEs.
There is a need to support and nurture them to ensure that the social benefits and associated economic impact accrue within the countryand not outside.
An India Technology Entrepreneurship Mission should, therefore, be launched to reposition India as an innovation powerhouse.
What kind of growth do you see this year compared to last year, especially with new norms and policies expected ?
Given the improved economic scenario worldwide and willingness of businesses to spend more on technology solutions, we are positive of witnessing an improved growth rate for the industry in the coming years. We will be suggesting a set of recommendations to the new Government, which has already showcased its intent through the BJP manifesto to leverage technology to accelerate India’s overall growth.
These recommendations will help the industry in India to achieve ease in operations and tap more opportunities within the domestic market. Beyond this, our recommendations also involve changes in government project procurement policies that will allow the industry work closely with the Government and leverage the best technology solutions to bring about a difference.
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Autor(en)/Author(s): S Ronendra Singh
Quelle/Source: The Hindu Business Line, 16.05.2014
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