Information technology (IT) industry is a key driver for India’s economic growth and employment and has demonstrated robust performance over the past two decades.

The IT industry – including both software exporters and business process management firms – employ around 23 lakh people.

With the formation of the new Government, the industry body Nasscom, expects better future and many more support from it.

In an interview with Business Line , R Chandrasekhar, President, Nasscom, shares more thoughts. Excerpts from the interview:

What are the top key things the IT industry expects from the new Government?

Nasscom will work with the new Government to build policies and programmes that enable the industry to play its destined role globally as well as in the development of the country. The year 2014 has brought optimism for the industry with improvement in the economic climate and expected rise in technology spending. Given the current business environment, Nasscom has expectations from the Government at three broad levels. The first being, introduction of policy measures to create an ecosystem that nurtures young businesses and accelerates their growth. Second, regulations that will help reducing business friction and introduce policies that brings about an ease in processes of investment, IPO and taxation. The third focus is on building new markets while expanding existing markets and lay emphasis on skill development that helps create workforce that can match the requirements of the industry.

Going forward, e-Governance will be the most effective tool that can bring minimum Government and maximum governance as it is effective and economical. Use of IT can put India on the road to fast and inclusive growth and also empower the youth of the country. The larger expectation from the Government is to make the country a digital India, which is a knowledge-based society and economy where IT will be the growth engine of New India.

How different do you expect the BJP Government to be compared to UPA as far as hearing industry views?

IT Industry has enjoyed phenomenal support across parties at the Centre and at the State. However, given the historic mandate that BJP has got from the electorate and the agenda of growth, our expectations would be fast tracking of new initiatives, consistency of policy and reduce irritants to ease of doing business. Narendra Modi in his speech at the Nasscom Leadership Forum had stated that IT (India Talent) + IT (Information Technology) = IT (India Tomorrow) and we expect to work with him on implementing this vision.

Do you think Government should be promoting STPI, which is not prevalent now?

The STPI scheme does exist, but is not attractive for the industry as the profit-linked tax incentives have been withdrawn. The STPI scheme has played a phenomenal role in building the export-led technology and services industry in India. While the stated intent was to do away with profit-linked incentives, it is imperative that SME and start-up companies are supported through a holistic scheme. Can we have an STPI 2.0 scheme that is applicable for SMEs and start-ups and provides an enabling environment through a one-stop window for all necessary approvals and compliances; seed funding support; benefits and incentives for creating employment and IP, market access to global and Indian markets?

Any incentive for the BPO/ BPM sector like new SEZs for them?

SEZ policy has been built with the right intent to provide a conducive framework and propel exports from India. However, imposition of minimum alternate tax and other restrictive policies has diluted the impact of SEZ . We would urge the Government to mandate the SEZ scheme to be implemented as per its original provisions and also permit `virtual SEZs’ to come into operation within the scheme.

Apart from promoting new entrepreneurs (start-ups) by the industry bodies or companies, do you think Government should come out with a policy for such innovators?

Technology start-ups and SMEs in the IT sector today could potentially develop disruptive products and services, be the next generation of IT driven innovation, and can tailor solutions to Indian needs. The Government should ensure that the policy and regulatory environment encourages and attracts technology start-ups and SMEs to set-up business and operate in India. The existing business environment is indifferent and stacked with regulations unfavourable to entrepreneurs and tech SMEs. There is a need to support and nurture them to ensure that the social benefits and associated economic impact accrue within the country, and not outside. An India Technology Entrepreneurship Mission should therefore be launched forthwith to reposition India as an Innovation powerhouse.

What kind of growth do you see this year compared to last year, especially with new norms and policies expected in overall economy?

Given the improved economic scenario worldwide and willingness of businesses to spend more on technology solutions, we are positive of witnessing an improved growth rate for the industry in the upcoming years. We will be suggesting a set of recommendations to the new Government, who have already showcased their intent through the BJP manifesto to leverage technology to accelerate India’s overall growth. These recommendations will help the industry in India to achieve ease in operations and tap more opportunities within domestic market. Beyond this, our recommendations also involve changes in government project procurement policies that will allow industry to work closely with the Government and leverage best of their technology solutions to bring about a difference.

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