Bengaluru, July 5 (IANS) The absence of a new Special Economic Zones (SEZ) policy in the Union Budget for fiscal 2019-20 is a missed opportunity, Indian IT industry's apex body Nasscom said on Friday.
"One key exclusion in the Budget is a new policy for SEZ as its benefits end in March 2020. If they (benefits) are not extended, India will miss the opportunity even as other countries continue to provide benefits to their enterprises," said Nasscom in a statement.
Noting that the Economic Survey had stressed on the need to focus on large firms to achieve the $5-trillion dream, it said the Budget had fallen short on renewing the SEZ policy.
"In our pre-budget representation to the Finance Ministry, the industry's demand was a proactive SEZ policy to strengthen our country's position as a global hub for IT services," Nasscom said.
As the resilient IT-BPM (business process management) sector contributes 7.9 per cent to the GDP and creates a whopping 40 lakh jobs, it said lack of incentives would impact the country's image as an attractive destination for outsourcing IT services.
The Economic Survey 2018-19, tabled in Parliament on Thursday, estimated the IT-BPM revenue to be $181 billion for the fiscal under review from $167 billion in fiscal 2017-18, an annual increase of 8.4 per cent.
Of the total revenue, industry exports are estimated to grow 7.9 per cent annually to $136 billion from $126 billion in the previous fiscal (2017-18).
"IT services constitute the largest segment, with 52 per cent share, followed by BPM contributing 20 per cent, while software products and engineering services accounted for 19 per cent, hardware 10 per cent and e-commerce 12 per cent," said the Survey.
Terming the budget proposals Finance Minister Nirmala Sitharaman presented in the Lok Sabha earlier in the day as inclusive with a right vision, Nasscom said the government had to spell out the steps to realise its $5-trillion dream by next 5 years.
"One of our key asks was a roadmap for building skills for new age technologies, which are critical for success in the digital era," it said in the statement.
It lauded the government's intent to enhance digital skills, as it is the need of the hour and its commitment to train 10 million youth in disruptive technologies such as Artificial Intelligence (AI), Internet of Things (IoT), Big Data, Robotics and 3D printing.
Welcoming the government's decision to exempt start-ups from scrutiny of the funds they raise, the industry body said the clarity on angel tax would also evangelise the community.
"A dedicated television channel to allow start-ups to promote themselves and make critical connects with venture capital networks to raise funding will build the community," it said.
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