Mumbai, Dec 17 (UNI) In its pre-budget memorandum to the finance ministry, the IT industry's apex body NASSCOM today said that the Indian BPO industry is at a nascent stage and hence needs further support and nurturing.
NASSCOM, the face of the Indian IT cum BPO industry, has announced its wish-list for the upcoming union budget, to be delivered in February. Continuation of the Software Technology Parks of India (STPI) scheme beyond 2009 tops the list of the top five demands from NASSCOM.
The other four issues are broadening of the eligibility criteria for Large Tax Payer Unit (LTU) scheme, Foreign Tax Credits, Advance Pricing Agreements (APA) to provide upfront tax certainty and refund of service tax paid on services utilised for export of computer software and BPO services.
Seeking an extension for the STPI scheme, NASSCOM said that it has proved to be a big success and a major contributor to the growth of Indian economy.
''The Indian BPO industry is at a nascent stage with great growth and employment potential. At the same time, competition from other countries is intense, since it does not need any specialised manpower. Therefore, there is a strong case to nurture and support this industry through the continuation of the STPI scheme,'' said NASSCOM in its pre-budget memorandum.
The lobbying group for the IT and BPO industry in the country said that the extension of STPI will provide level playing field between small and big companies, and between India and other countries and it will also help sustain growth of the BPO sector.