SEARCH

Krishnakumar Natarajan: Tax regime should boost growth of smaller IT firms

Krishnakumar Natarajan
Comment   ·   print   ·  
Krishnakumar Natarajan
Krishnakumar Natarajan

The Indian IT Industry is looking ahead optimistically to build a $300-billion industry by 2020.

The short-term signals are positive and the demand scenario is looking far more positive than it was a year ago. But we need to be cautious as alternative locations are also emerging. It is critical that the Government sees both the economic and the social impact which the IT industry can create and accordingly provide the right enabling environment for the industry to thrive. In this context, the Budget 2013 becomes very crucial. My Top 5 expectations from the budget are:

Provide an incentive model to build products and intellectual property in India. We need to fast known as a nerve centre for innovation.

Sizeable investments in deploying technology in healthcare, education and governance. This will enhance quality of living and also stimulate domestic demand for IT-related services.

We must drive more inclusive growth. To ensure these, incentives must be given for IT industry to spread itself to Tier-2/Tier 3 cities.

The IT industry will grow and be innovative if smaller, nimbler companies are encouraged to grow and thrive. The current procedures and policy environment for small companies is stifling. A small entrepreneur has to deal with multiple taxes and 10 different departments. We need to make the operating environment friction-free for small entrepreneurs.

SEZ policy should do away with minimum, contiguous land etc. so that small and medium companies can also derive the benefits of SEZ.

There should be easy access to working capital for knowledge companies and the budget should articulate platforms for this.

(The author is CEO & Managing Director, MindTree Ltd.)

(This article was published on February 20, 2013)
XThese are links to The Hindu Business Line suggested by Outbrain, which may or may not be relevant to the other content on this page. You can read Outbrain's privacy and cookie policy here.

Comments:

This article is closed for comments.
Please Email the Editor


O
P
E
N

close

Recent Article in Info-tech

Sitting pretty: (From left) Ajoy Mukherjee, Executive Vice-President and Head-Global Human Resources, Tata Consultancy Services; N Chandrasekaran, Chief Executive Officer and Managing Director; Rajesh Gopinathan, Chief Financial Officer; and Phiroz Vandrevala, Director and Head, Global Corporate Affairs, announcing the company’s results in Mumbai on Thursday. - SHASHI ASHIWAL

Lesser revenue seen for TCS’ Japan venture

Existing contracts, forex fluctuation force IT major to revise estimates »

Comments to: web.businessline@thehindu.co.in. Copyright © 2014, The Hindu Business Line.