With over 30 million MSMEs (Micro, Small & Medium Enterprises) contributing to nearly 8 percent of the country’s GDP, this industry certainly has a major role to play in India’s economic growth story. Surely, some encouragement from government in the form of tax SOPs will motivate these MSMEs to keep up with the rising pressure from global MNCs.
SMEStreet has taken an nationwide outreach initiative to present Industry’s perspective on expectations from Mr Arun Jaitley’s Union Budget for 2015. This will be a series of industry features which will cover various industry perspectives and industry expectations.
Information Technology Expectations
IT has given so much to the country. IT holds great relevance for almost every industry vertical. Investments on IT infrastructure needs to be promoted and entrepreneurs must be motivated to adopt newer technologies. While putting across expectations from the perspective of technology provider to businesses, Virender Jeet, Senior VP- Technology – Newgen Software said, “Another focus area could be the IT products and services industry which has long been the backbone of country’s exports. It must be nurtured to be able to compete in the global market. Government should look to introduce special monetary incentives for the Indian software product companies that invest heavily on research & development to create world-class software products. These products are not only the major revenue streams to bring in foreign exchange and reducing fiscal deficit, but are also the technology assets that can make us a global superpower. Developing advanced indigenous technology is integral to the ‘Make in India’ initiative and in realizing the dream of Digital India. Of course, the employment opportunities created in the process for the skilled workforce is insurmountable.”
The focus should be on setting-up more IT and software parks to bolster growth in the Indian IT industry. The government should also provide a level playing field to Indian firms for all IT related projects and initiatives being planned. Also expected are more stringent IPR protection laws for safeguarding innovations that takes time to get implemented, in IT product industry.
Over last few years, Industry have witnessed a huge focus on digital marketing and promotion. Sharing his expectations from the Union Budget 2015, Mr Shrenik Gandhi, Chief Executive Officer- White Rivers Digital said, “Quoting our PM, Shri Narendra Modi, right to digital connectivity should be considered as a basic right. To encourage more people to embrace the digital universe, there has to be a certain benefits passed on to the industry. There was a time when export income was non taxable. Expecting government to waive off income tax would be a bit too much expectation, while giving a certain tax benefit to the industry players driving the force would be a reasonable expectation.”