Nasscom Urges Modi Govt To Usher Positive Changes In ICT

by CXOtoday News Desk    May 19, 2014


Given that the ICT sector is already a major contributor to the country’s GDP and is on a fast track growth, IT Nasscom is preparing a policy advocacy document with the hope that the new government to be led by Narendra Modi will bring more positive changes to the sector. The industry body is covering a range of issues like taxation, incentives for creating jobs in small towns, streamlining of rules to help start-ups to present to the new government.

“Given the importance that Mr Modi has placed on technology, we are very hopeful that these changes will happen. We will present the document as soon as the ministries are in place,” R Chandrasekaran, Nasscom chairman, told ET.

Narendra Modi also appeared via a video-conference at Nasscom’s National India Leadership Forum in February this year. He had said he would place an increasing focus on the information technology sector.

Nasscom’s long list of requirement hopes to present the new government from streamlining transfer pricing rules to making it easy for failed start-ups to wind down their operations. Changing laws to better regulate the nascent e-commerce sector is also on the list. Nasscom also wants the government to offer incentives to boost domestic IT adoption, says the report.

Read: What ICT Reforms Can New Govt Bring In India?

In an exclusive with Business Line, Chandrasekhar also said, while e-Governance will be the most effective tool for the government, 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.

Despite a positive IT growth over the years, Indian IT firms have often complained of the difficulty of doing business with the Indian government, the largest contributor to IT spend in the country, and several Indian and multi-national IT companies, like Infosys and IBM, have come under the taxman’s scanner. Nasscom will ask the Modi government to give a serious thought to the matter.

Prior to the elections, the NDA-led government has also circulated a manifesto for the 2014 election to give its citizens a better picture on what one can expect in the technology sector. “Technology enabled e-Governance - minimizing the discretion in the citizen-government interface. Reviewing and reviving MSME sector and enabling it with better access to formal credit and technology for modernization,” says the manifesto.

Going by the manifesto, critics and industry watchers expect a big change in areas such as e-governance, mobile, local manufacturing and telecom, where the maximum potential exists. Nasscom is also lobbying for the various changes in the sector.

Other industry bodies are also prompting the new government to bring in positive changes in ICT. Industry body IAMAI recently stated that the new government should give importance to India’s Internet growth. It should ensure that Internet growth in India is not hampered by rules that create additional challenges for telcos, internet and web-hosting service providers and search engines, it said.