'Strong Fiscal policy must for boosting IT sector'

Bangalore, Jun 6: NASSCOM President Kiran Karnik today said that country should have a strong Fiscal Policy to give further boost to the Information Technology sector.

Talking to newsmen, on the sidelines of inauguration of India's first IT Finishing School, here he said that "no doubt Indian IT industry has made a name globally, but a strong Fiscal Policy can only ensure further growth of the industry as rupee value against US Dollar needs to be strong." Mr Karnik said more levies, lack of infrastructure and other hinderences may affect the growth of IT sector. Replying to a question about rupee value coming down against Dollar, he said it may be mainly due to US Economy and dollar weakening and it is only temporary and IT industry should be prepared for two per cent increase in the prices.

Calling for strong infrastructure for IT industry to grow, Mr Karnik said that though Indian IT industry has made a name at the global level, the market share was only three per cent " I will be happy if it touches 10 per cent, but it is not so easy as all factors including government encouragement by providing necessary infrastructure, reducing tax and improvement in the available human resources are needed."

Referring to a meeting of IT chiefs with Karnataka Chief Minister H D Kumaraswamy earlier in the day, Mr Karnik said that it was suggested to the Chief Minister to take lead in establishing an Integrated Knowledge Township with strong connectivity to the Airport. He said the Chief Minister gave a patient hearing. Mr Kumaraswamy asked IT industries to adopt villages for overall development and establish more and more industries in rural areas instead of concentrating on cities.

Later, delivering his keynote address, Mr Karnik said that IT industry needs atleast 500,000 engineers in the next five years and though country was producing a large number of engineering graduates, when it came to employment only 30 per cent fit in which majority were left out due to lack of proper working knowledge.

"I am happy that Karnataka has taken a lead in establishing IT Finishing School. It is a great initiative and I am sure it would be opened in other cities also and large number of Engineering graduates get employed and IT industries need were fulfilled", he added.

Stressing the need for innovation in the curriculum, Mr Karnik said that private companies couldbe permitted to open Colleges.

Creation of Special Education Zones would go a long way in creating proper infrastructure for producing employable Engineering graduates, he added.

He said that serious attention need to be paid to fill the gap between available human resources and its utilisable for industrial growth.

Karnataka Minister for Science and Technology Ramachandragowda, who inaugurated the IT Finishing School said that IT companies contribute 25 per cent of the State GDP and it is important to lookinto the needs for further progress.

UNI