Chairman and Chief Mentor of Nasdaq listed Infosys, N R Narayana Murthy on Sunday said the government should adopt new policies to give much more tax exemption to smaller IT companies than the bigger ones.
“We have been requesting the Finance Minister that there is no need for tax exemption for companies like Infosys that make Rs 6,500 crore of profits (last year). You have to give tax exemption for companies that make Rs 50 crore profit. Beyond that all of us have to pay taxes”, he said at a function here.
Such policies should be created not only for the software industry, but also for the agricultural industry to help poor farmers more than rich farmers, he said, speaking at an International conference on “Eliminating hunger and poverty,” organised by M. S. Swaminathan Research Foundation.
“Today most policies we have adopted are helping richer farmers”, he said and warned there could not be inclusive growth if there was no improvement in the living conditions of those who depend on agriculture.
Stating that about 65 per cent of people in India directly or indirectly depend on agriculture, he said their per capita contribution to GDP was almost one third the national average.
“There lies a very clear message that unless we do something to alleviate conditions of those who depend on agriculture, we will not be able to see inclusive growth our Prime Minister (Manmohan Singh) has been so passionate about”, he said.
Urging for a pathway to make small farmers earn more revenue, he said “we have to get into some form of market driven prices. While making this, we have to get into some form of direct subsidy and voucher based subsidy. By this policy option, we will be creating a suitable incentive for making farming an attractive profession“.
He suggested adopting an agriculture policy which could create an efficient supply chain and distribution mechanism, since there cannot be a situation where 35 per cent of produce rots before reaching those intended.
Mr. Narayanamurthy also said there has to be a policy that encourages use of IT in making agriculture industry much more efficient.