Jai ho, says IT sector

July 11, 2014 12:29 am | Updated November 16, 2021 07:11 pm IST - HYDERABAD:

The announcement of a number of Information Technology (IT) related projects and initiatives and allotments of hundreds of crores got the local IT industry excited.

A Rs. 10,000 crore fund for start-ups, Rs. 7,000 crore for 100 smart cities, Rs. 500 crore for National Rural Internet and Technology Mission and Rs. 100 crore for Technology Development Fund are some of the allocations made by the NDA government which was announced on Thursday.

The industry bigwigs and experts also reacted positively to the announcement on transfer pricing. Ramesh Loganathan, president, HYSEA and Managing Director, Progress Software said, “With operational aspects addressed such as transfer pricing clarification and also the note on retrospective taxes, the industry welcomes the move. Transfer pricing clarification is good for existing multinational companies in IT sector and this was single biggest issue the industry had. E -visas is another good provision which will encourage and enable more business travel in the IT sector.”

According to Mr. Ramesh, there are good provisions for infrastructure, which will spur economic activity and enable better projects in cities like Hyderabad. The biggest talking point, however, remained the massive Rs. 10,000 cr fund aimed at nurturing entrepreneurship.

Murali Bukkapatnam, president, TiE Hyderabad said, “It is one of the most positive budgets for start-ups and we are delighted to see some very encouraging announcements promoting entrepreneurship. The venture capital fund will enhance the capital inflow to new start-ups and SMEs, while on the other hand new national accelerators and incubators will boost innovation. Five new IIT’s and IIM’s will also result in more enterprising start-ups mushrooming in the country.” Mr. Murali felt that “Skill India Program” will encourage entrepreneurship at the rural level.

It was also felt that there is a good chance of employment generation as a result of these projects.

“The Union Finance Minister presented a good budget. The encouragement to start ups, entrepreneurship, innovation and incubation is a great initiative and is a high priority area for it will be the engine for employment generation,” said B.V.R. Mohan Reddy, Executive Chairman, Cyient and Vice-Chairman, NASSCOM.

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