“Investments worth millions lost to China, East Europe, Asia Pacific nations”
CHENNAI: The National Association of Software and Services Companies (Nasscom) on Tuesday urged the Centre to come out with a definite plan for the next three to five years to tackle vital issues such as rupee appreciation, taxation and subsidies so that the country can attain a dominant position in Information Technology and IT-Enabled Services.
Speaking on “Innovation as the key to growth for the IT & ITES industry,” organised by the Rotary Club of Madras, Nasscom chairman and Cognizant vice-chairman N. Lakshmi Narayanan said that as the Centre did not adopt a clear stance, “we have lost tens of millions of investment in the last six months to China, East European and Asia Pacific countries.”
Mr. Lakshmi Narayanan said the companies were not in a position to charge more to offset the effect of the rising rupee as India was not a dominant player. “Other countries are providing subsidies, and this prevented us from becoming a dominant force. Providing subsidy is not the only way to attain a dominant position. But, if other countries are doing it, we have to follow them. It might take another two-three years for us to achieve the dominant position after which we can dictate terms.”
He said many countries were not investing in India because there was no clear-cut taxation, and this issue had to be sorted out. Incentives should be given to industries to tackle the rupee appreciation. China had created an India-specific zone to attract more investment.
Mr. Lakshmi Narayanan urged the youngsters not to be afraid of failure but to keep trying out new things to achieve success.
“Those in Silicon Valley succeeded owing to their tolerance of failure.”
“India has the great opportunity, talent pool and young mind. The young minds are ready to explore even things considered impossible by seniors… The Nasscom, through its Innovative Forum, will urge the entrepreneurs to take more risk and try new things,” he said.