Govt Plans to formulate New Policy for IT Sectors
With the gradual slow down in the IT Sector over a year,the Government is planning to review policies which could boost these sector sagging fortune. On the cards is a committee which is expected to study the factors affecting the industry and give its recommendation on the possible measures that the Government could take to contain the situation.
The Ministry of Electronics and IT is deliberating whether there is a way the Government can come up with policies that help the industry to get back its focus and growth.”The review of the entire IT sector is being considered,even though some are contending that there is no slowdown in the sector,others have feeling that jobs are moving from the software side and the situation has to be handled in a coordinated way so that focus and growth of the situation continues”,said an official privy to the discussion.The Indian IT Sector reported one of its worst second quarter results in a decade,as a slew of factors muted the sector’s growth.
The official said that since international revenues are stagnating for everyone,some policy measures can be taken to incentivise domestic demand,which can make up for the lost revenue from foreign business.
The ┬áscope of the committee,however will be much wider than just the software sector.A kay part of the committee will also look at the impact of the Goods and Services Tax(GST) on electronics manufacturing,especially for the mobile phones,which has been a huge success story. The roll out of thr GST is said to take away the duty differential advantages enjoyed by the companies that choose to manufacture or assemble in India over importing and is said to have made the industry nervous.The committee will be announced post consultation with the finance ministry over the issue.
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