Government Must Incentivise IT Services Sector To Boost Exports: Assocham
New Delhi: Industry body Assocham has sought from the government incentives for information technology (IT) services sector in the country to boost their exports.
"India's IT services sector witnessed 4.2 per cent growth in 2012-13, while Russia and Philippines grew at a massive 69 per cent and 27 per cent, respectively.”
"In face of increasing competition from abroad, it is imperative that IT industry be incentivised towards increasing its export growth," the chamber said in a letter to Commerce Minister Anand Sharma.
Elaborating on the measures needed to incentivize IT services sector, Assocham has proposed that incremental export incentive scheme be extended to software services sector in order to encourage businesses to re-locate to India or scale up their presence here.
It also suggested that a fully tradable scrip of value equal to seven per cent of incremental exports over and above the previous year be granted, which could be used for payment of any customs duty and the scheme should be extended for a five-year period.