The National Association of Software and Services Companies (Nasscom) has recommended the Union government to offer incentives for investment in research and talent development.
Nasscom, the industry body for $177 billion IT-BPM sectors, said it has submitted an “extensive” recommendations document with the government ahead of the Union Budget next month.
Nasscom said it has explored the demand and perspective of various stakeholders of the IT services industry, which accounts for more than 6.6% of the nation’s GDP and employs more than 4.1 million people.
It has drawn the government’s attention as to ensure there are no roadblocks for the industry’s growth, which has a multiplier effect on India’s economy and crucial to achieve the $5 trillion GDP milestone by 2024, said the industry body in a press release.
The key recommendations include a) a tax-friendly Special Economic Zone policy for the next 20 years; b) incentives for R&D investments in technology, talent development and reskilling; c) growing India as a technology start-up hub through encouraging funding; d) easing taxation regime for the digital economy and promoting ease of doing business.
Nasscom has suggested the government to set a budget of Rs. 500 crore for the financial year for co-funding talent development and re-skilling in IT services, thereby creating future ready talent. It has also talked about promoting creation of intellectual property (IP) in engineering and research & development (ER&D) through incentivizing investments in centres of global MNCs in India and nurturing 1000 technology spin-offs from the ER&D centres.―India Finance News