Government Must Incentivise IT Services Sector To Boost Exports: Assocham


Stating that Software Technology Parks of India scheme (STPI) has lost its charm with the income tax benefit being withdrawn from 2011 onwards, the chamber stressed upon the need to attract new IT services organisations.

The business chamber also suggested for combining a few schemes to reduce complexity in the export-import policy.

Highlighting that India could become a hub for repair and re-manufacture of factory refurbished goods owing to availability of low-cost skilled labour, Assocham proposed that the policy in this regard be suitably amended.

At present, the export-import policy restricts import of used goods while the process of applying for their import license is also cumbersome.

According to estimates, India's share in trade of such goods has been less than $10 million while that of the US and European Union was to the tune of about $20 billion till a few years ago.

Besides, Assocham has also suggested the Commerce Ministry to re-engineer the trade policy by incentivizing existing manufacturer-exporters to increase investment and provide fiscal incentives to micro, small and medium manufacturers as well as exporters.

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Source: PTI