Nasscom for Rs 500 crore fund for IT industry growth

June 27, 2014 06:23 pm | Updated November 17, 2021 03:47 am IST - HYDERABAD

The Nasscom (The National Association of Software and Services Companies) has recommended the central government, just ahead of the Budget, to allocate Rs 500 crore fund for the holistic development and growth of the IT industry.

The Nasscom has volunteered to felicitate this mission aimed at nurturing technical entrepreneurship, skill development, improving infrastructure and to attract and retain talent in the country.

Making this announcement at a press briefing during the Nasscom Big Data and Analytics Summit 2014 held on Friday, R. Chandrashekhar, president, Nasscom, informed that a set of recommendations and suggestions has been sent to the government for taking pro-active initiatives concerning the IT industry.

Though accounting for only 20 per cent of the industry turnover, Mr. Chandraskehar made a strong pitch for the 15,000-odd and growing start-up companies. “These start-ups are being established by young tech-savvy entrepreneurs who may not be very knowledgeable but they are required for the industry to grow. They require strong support from the government.”

He suggested that the government should decrease taxes on angel investors and venture capitalists supporting these start-ups and also called for relaxation of regulatory procedures for these small ventures. “The government should support establishing incubation centres and help in early stage funding of these companies. This way the risk is reduced,” he said.

Mr. Chandrashekhar added that the 10k start up programme initiated by them resulted in 350 companies already being funded.

Informing that the country enjoys 50 per cent share in global IT sourcing market with a contribution of eight per cent to the country’s GDP, he said, this figure will cross 10 per cent in the next five years. However, he said that need of the hour is a “suitable and transparent taxation and regulatory policies”.

“The technicalities are standing in the way. Industries and companies operate in multiple business locations. There are mounting litigations related to taxation issues which are not conducive for business environment. The government should consider the global practises and bring in clarity,” Mr. Chandrashekhar said.

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