NASSCOM seeks major educational reforms

Bangalore, July 2: Making out a strong case for drastic reforms in education to improve the quality and quantity of higher education in India, NASSCOM, the voice of the Indian IT Industry, today sought continuance of tax sops to the sector.

At the annual press conference to review of performance of the sector here today, NASSCOM President Kiran Karnik, making a fervent appeal to the government said, ''Just as the economic reforms, there is a dire need for putting in place massive education reforms by the government''. Hardly ten per cent of the youth in 18 to 24 age group take to higher studies, compared to 50 per cent in Korea and 60 per cent in the US, he said.

With the IT sector looking ahead for a manifold growth to tap the growing potential, there was a need for proper system in place, in the long run, to provide people with quality and quantity.

He said that though in the short term the concern of lack of manpower could be tackled by initiatives such as finishing schools, the long term requirement need to be addressed by the Government and the industry jointly.

In the same voice he also urged for extension of tax sops, especially for those IT companies registered with the STPI for another ten years. He said while big IT companies move into their own Special Export Zones, the small and start up companies would be left high and dry without any concessions.

Mr Karnik referring to the traditional sectors crying hoarse over benefits extended to the IT sector explained that even these companies get export subsidies and concessions and the IT sector was also seeking the same. However with the IT being people intensive these companies should be provided such incentives wherever they were.

Pointing out the case of Bihar which did not have even a single SEZ he asked would it not be disadvantagious to a IT Start up in Patna if it was denied sops.

NASSCOM Chairman Lakshmi Narayanan maintained that the industry continued to maintain good ecosystem with government support. This ecosystem should fuel the further growth of the industry to attain the targets set. Mr Karnik said that the IT industry in the country had not reached the saturation point and a recent study had revealed that while the IT services sector could grow eight fold, the IT enabled Services could grow ten per cent.

Though the other countries such as China were investing in the sector both in infrastructure and people, India was well ahead of them. But the country should not be complacent he warned and sought necessary steps from the government and the industry to enable the sector maintain its pre eminent position as the preferred destination for IT oursourcing.

UNI