The Hindu Business Line : Scheme to help IT firms grow beyond Bangalore

The new Karnataka Government will shortly come out with incentives to help its iconic IT industry branch out of Bangalore into tier-II and smaller cities and also tap rural talent in those centres, according to the IT and Biotechnology Minister, Mr Katta Subrahmanya Naidu, here on Sunday.

He said the aim is to retain the IT majors in the State while encouraging them to set up shop in backward cities such as Gulbarga and B-cities like Mysore, Mangalore and Hubli-Dharwad. Some of the industry majors have already been engaged in talks to this effect and an action plan should be ready within 15 days, Mr Naidu said at a constituency-level job fair.

In the process, the IT and biotechnology majors are expected to recruit local rural talent. Allaying fears on their employability, he said the department would ensure that the candidates got quality education relevant to the industry.

Mr Naidu said the State’s premier sector should consider raising software exports from the State to Rs 1 lakh crore – or almost double the present Rs 54,000 crore.

In the last one year, the State has been facing a slowdown in growth of IT investments, losing them to other States due to a severe congestion in software hub Bangalore.

The growth in software exports also slackened – from 36 per cent in 2006-07 to around 16 per cent in 2007-08.

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