Removal of MAT applicability for SEZ units has been a long-standing demand of the industry, which should be considered this year by the new government to give the necessary fillip to the increasingly challenged margins of the players in the IT sector due to global pressures, according to Sandeep Ladda, India Technology leader, PwC India.
Incentives should be offered for segments like software products, hardware engineering and semiconductor which are seen as the growth drivers for the sector. This will enhance the innovation quotient of the sector.
This would boost investments into the country and will create a conducive ecosystem for carrying out business. This would create enough opportunities for the sector to show significant growth.
Despite being a labour surplus country, India is facing an apparent talent deficit. The industry in partnership with the government needs to address the industry-academia disconnect by partnering with engineering and other technical institutes and enhancing their in-house training facilities.
The sector has moved towards the tier 2-3 cities but lack of supporting infrastructure in terms of internet connectivity, well-equipped airports, poor social infrastructure like schools, hospitals, etc. have hampered their growth.
With a view to make India a manufacturing hub and with bulgeoning demand of Technological products, the Government should provide an effective single window clearance mechanism to the Electronics/Semi-Conductor Manufacturing initiative launched by the government.
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