Budget 2014: Information Technology needs more fuel to keep the engine running
The IT sector has grown far and wide in the country and today it employs approximately 2.24 million.
The expectations of the masses from the new Indian government now lie with the Union Budget 2014. Every bit of change to the economy in each sector will have a huge difference, not only to the sector but to minds of the people who brought the new government to power.
Since the expectation of the country's growth is expected between 5-6 per cent, a more realistic Budget with less borrowing is hugely presumed by experts. In the last two decades, India's IT industry has played a major role in the country's development. The IT sector has grown far and wide in the country and today it employs approximately 2.24 million people. While the growth has been evident all these years, today it has reached a stage, where climbing upto the next level has become a bit difficult. Today the field needs more fuel to keep the engine running and the IT sector is expecting that the new Budget will have solutions for the issues the sector is facing.
Here are Information Technology sector's top five expectations
Government's support to initial entrepreneurs
A necessary initial support by the government to upcoming companies will be a bliss. According to Nasscom (a trade association of Indian Information Technology and Business Process Outsourcing industry) the small and medium enterprises contribute about 80% of the industry's revenue and are characterized by higher upfront investment for software product (IP) development, non-bankable assets, without immediate revenue stream.
Although they have the required potential and creative heads for it, capital becomes and obstacle int heir way. If the government agrees to guard their necessities, it could take the IT sector to a different level of success.
Improvement in infrastructure
IT sector wants a boost in the country's infrastructure. Energy, communication technology, transport all needs to meet the demand of a fast developing country. This stands as the biggest hurdle in the way of progress. Although there is desire to improve the situation over decades nothing credible has been cemented.
Clarity in taxation
There has been a lot of taxation issues which are lingering around since a long time and needs clarity. The IT sector is expecting a clear answer in the royalty implications in software, eliminate alternate tax on special economic zones and and take steps to minimize litigation.
Simplify Indian corporate tax system
The corporate tax system in India is painfully complex and it urgently requires to be converted into a simpler one. The complexity of the tax system many a times stops investors from setting up their company in India. A simpler way of getting into Indian market would help the industry grow better.
Improvement in the education system
India produces 3.1 million graduates a year, but ranks 84 out of 144 countries in quality of education. There is an urgent need for the government to invest money in this field to churn out better young minds. Although there is potential and desire to reach the needed, capital has been the hurdle. There also needs to be change in the pattern of education of educational courses usually adpted by students in India. The focus should shift from just IT and medical field to technical talents.
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