Strong Fiscal policy to boost IT sector

Bangalore, Jun 6 (UNI) NASSCOM President Kiran Karnik today said the country should have a strong fiscal policy to give further boost to the Information Technology sector.

Talking to newspersons here on the sidelines of the inaugural function of India's first IT Finishing School, he said ''no doubt IT industry has made a name globally, but a strong fiscal policy can only ensure further growth of the industry as rupee value against Dollar needs to be strong.'' Mr Karnik said more levies, lack of infrastructure and other hinderences may affect the growth of the 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 termed it as a temporary phase.

The IT industry must be prepared for two per cent increase in the prices, he added.

Calling for a strong infrastructure for the growth of IT industry Mr Karnik said though 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 in the form of necessary infrastructure, reducing tax and improvement in the available human resources are needed,'' he added.

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