FM holds pre-Budget meet with representatives of IT sector

Written By Unknown on Rabu, 14 Januari 2015 | 23.25

Moneycontrol Bureau

The role of IT sector is crucial in order to promote e-governance for empowering citizens, said Union Finance Minister Arun Jaitely today. He feels that on a larger scale, the sector plays an important role in boosting manufacturing sector in the country

Speaking at the pre-Budget consultative meeting with the IT (Hardware & Software) groups in New Delhi today, the FM said that success of 'Digital India' initiative will rely on the IT/BPM sector for design, deployment and its continued success. Even realization of 'Make in India' is inseparable from ICT sector.

The meeting was attended among others by Jayant Sinha, Minister of State for Finance, Rajiv Mehrishi, Finance Secretary, Shaktikanta Dass, Revenue Secretary, Ratan P. Watal, Secretary (Expenditure), Secretary, Electronics, Dr. Arvind Subramanian, Chief Economic Advisor, and Snehlata Shrivastava, Additional Secretary (DFS).

The representatives of the IT (Hardware & Software) Groups present during the meeting included Vishal Sikka, CEO, Infosys , Suresh Senapathy, CFO, Wipro , Anil Chanana, CFO, HCL Technologies , Phiroz Vandrevala, Executive Vice President, TCS , R. Chandrasekaran, Chairman, NASSCOM, R. Chandrashekhar, President, NASSCOM, Sachin Bansal, CEO, Flipkart, Kunal Bahl, CEO, Snapdeal, Rostow Ravanan, ED, Mindtree , Naveen Tewari, CEO, InMobi, Vinod Nayyar, Tech Mahendra , Nitin Kunkolienkeer, Vice President, Manufacturer's Association for Information Technology, Sandeep Girotra, Head of Indian Region, Nokia, NK Goyal, President, Telecom Equipment Manufacturers Association of India, Pankaj Mahendra, Cellular and Subhash Goyal, President, ELCINA Electronic Industries Association of India among others.

This was for the first time that the Finance Minister held an exclusive pre-Budget meeting with the representatives of IT industry.

Various suggestions were made by representatives of IT industry during the meeting, including incentives for setting-up of data centers within the country. It was said there is a need to give tax incentives for building infrastructure for large data centers and cloud services within the country to ensure data security as well as to have a big network of large software products companies within the country. Besides it, other suggestions include more budgetary allocation for digital literacy programme in order to make Digital India a success, to promote innovations by allowing angel funding, stable tax regime, direct tax   benefits for the sector, tax benefits for cashless transactions, resolving issues relating to double taxation on software products, transfer pricing and duty drawback. There is need for clarity on royalty payment on software products (whether goods or services).

Jaitely said that modern manufacturing relies on IT for efficiencies and innovation leading to 'know-why' of products and processes. He further said that similar contribution from the IT sector can be made in healthcare, education and defence etc.


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