Straight from the Specialists
(Any opinions expressed here are those of the author, and not those of Reuters)
Despite volatility in the global economy, the Indian IT and business process management (BPM) industry has grown steadily and is set to cross the $100 billion milestone according to the National Association of Software and Services Companies (NASSCOM).
From a modest 1.2 percent in FY1998, the sector’s revenues now contribute around 7.5 percent of the country’s GDP. The industry provides direct employment to about 2.8 million Indians and indirectly employs 8.9 million people.
As part of this dynamic sector, we industry leaders expect some large-scale policy changes. The sector has the potential to keep India on the world map for the foreseeable future because of its growth and impact.
But tax policies go a long way in impacting foreign investments in the country. I hope that the government will revisit some tax issues the industry is facing today. Tax administration has become a sore issue. We are concerned about refunds pending at the tax office on account of both direct and indirect taxes. Existing hassles over tax issues must be resolved soon for the industry to grow further.