The Indian General Election starting from 7th April to 12th May 2014 will surely going to be one of the most crucial elections in recent history. Talking of the present scenario, there is a huge pressure on India and its financial markets. While IT industry is witnessing dull years for quite a long time, with a sluggish economy, falling rupee and thinning profit margins, it has become utmost important to revive the growth and it is no surprise that Indian economy and businesses will going to see the biggest change in the next two months.
The IT industry is betting high expectations from the upcoming elections and expects that the new government will bring some respite for them to run the businesses smoothly and efficiently. Take a look at some of the expectations of Industry associations from the new government to be formed in May.
Shyam Modi, Chairman, All Delhi Computer Traders Association
“The new government should emphasize on increasing infrastructure which will ultimately give benefits to IT industry as it is the pulse of every industry today. We want that the government to specify the work to the taxation department accordingly. There should be some relief in taxation policy so that growth can be seen in the IT industry. We want the business to grow and the harassment to be stopped.”
Rajeev Patel, Vice President, BITA
“BIS should be restructured as far as import is concerned. It happens in percentage. Whatever we import is in BIS structure which is to be frame in a better way. Due to BIS imposition prices of the products are going higher. We want that the new government should improve the import structure.”
Kshitij M Kotak, ASIRT laid emphasis on following points:
We want the government to create a level playing field between online shopping which are selling way beyond cost to eliminate competition and kill our inventory.
Watchdog from government should be appointed to monitor which MNC is selling below cost.
We want government to have reservations of 50% of purchases in government and semi government institutions to be done by SMEs. 50% of all our purchases should be made from small integrators or resellers because total of 56% of employment is done by SME sector.
75% services should be reserved for SIs who are below Rs.1 crore of service revenues to give them opportunity to compete against larger companies
GST has to be implemented at least on IT products. Uniform taxation should be there across the country.
Encourage Indian entrepreneurship for IT companies. Currently the industry is less benefits. IT is a cheap labour industry in the country and is not getting any support from the government in terms of relaxing the taxes.
BIS is another issue that the industry is dealing with. The government has brought a mechanism that every single product brought in India has to be tested for efficiency, safety etc. for smaller importer it doesn’t make any sense as they purchase the product in thousands. There is discrepancy which cannot be fought.
B. Ananda Rao, President, FITDAK also lists down few expectations:
Allocation of more funds for Government projects is required to boost the IT industry. we expect to have funds for Central and State Government and want to see more and more opportunities to cater to government sector.
We are looking forward on implementation of GST (Goods and Services Tax) which will remove all anomalies on entry tax.
We want drastic reduction in service tax which is too high in IT industry as much of the progress depends on IT. Service tax on IT services should be brought down.
We have service tax and VAT on software licenses. We want service tax to be removed and VAT to remain on software licenses.
We are also looking forward to FDI investment in IT sector. Government should encourage manufacturing sector in IT so that we can depend upon less import.
Pawan Kr. Agarwala, President, NECTA
“We want Indian economy to grow which will help IT sector to grow. We also encourage government purchases. To revive the IT industry the prices of the products should come down so that there is more buying of the IT products. Rupee value should go up against dollar. There should be a simplified tax structure and GST should be implemented which will give lot of relief to the industry.”