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The Government's Red Carpet | |
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While the software industry has been extremely innovating
and enterprising, it has achieved its phenomenal success with more than a
little bit of help from the government. The government has cut the red
tape and laid a red carpet of welcome for investors. The government is an
enthusiastic champion of the software cause, and in recent months has also
attempting to create an environment that is conducive for the growth of
e-commerce in the country.
The government's decision to place e-commerce transactions under the "zero tax" regime has been welcomed by the software industry. A three year moratorium on tax on e-commerce transactions (being mooted by Nasscom) could be a possible next concession offered by the Government. Three other decisions taken by the Government that will provide a shot in the arm to e-commerce activity include the passage of the IT Bill or cyber laws in the Indian Parliament, allowing 100 percent FDI to B2B e-commerce and allowing ISPs to get international Internet bandwidth through submarine cables. For the software industry, the government has recently announced an income tax holiday for units based in specific areas of software technology parks and export promotion zones. Remote Services With competitive telecommunication costs, well-developed infrastructure and a huge pool of English speaking, computer literate graduates, India rates higher than many other countries as a hub for IT enabled services including call centers and medical transcription. The McKinsey study indicated that India will earn $20 billion in revenues through these services and create additional employment of one million jobs by 2008. Already companies like GE Caps, British Airways, Swiss Air and British Telecom are using Indian companies for these services. Future Growth While the software industry has recorded a phenomenal performance over these last two decades, it seems, the best is yet to come. The Internet and the emerging of the new e-conomy is throwing up even more opportunities than India has ever imagined in the past. India is becoming a major player in the area of e-commerce, e-business and e-services, owing to the fact that Indian software and service companies have already geared up to face the challenges created by these emerging market segments. Further Information On the software business in India, contact us at india@webteck.com On the sponsors of the special section, visit http://adsections.businessweek.com |
