The Indian Information Technology –Business Process Management (IT-BPM) industry has proven its ability to grow, transform and remain resilient even during challenging times. This is evident from the fact that the sector clocked an estimated revenue of USD 178 billion (excluding hardware) in Financial Year 2020-21 which is over 50% to overall services exports. The Tech sector’s agility has enabled the services, globally, to work pretty much seamlessly during the COVID-19 pandemic. With an addition of 138,000 people in FY2020-21, the industry continues to be a net hirer with total employment estimated at about 4.47 million (~3.2% growth).
The pandemic has created an irreversible shift where digital technologies have become an imperative across organisations and governments globally. This represents a unique opportunity for India to accelerate growth and become the digital talent hub for the world. Given this, the Government should consider introducing measures which prioritise the IT-BPM industry’s ability to increase its global market share.
Based on inputs from the industry, NASSCOM has submitted a detailed memorandum of suggestions for the Union Budget 2022-23 (Budget) to Ministry of Finance on November 17, 2021.
Our Budget suggestions are encapsulated under the following broad categories:
- Part I: Corporate Tax
- Augmenting growth of Information Technology (IT) industry
- Improving start-up ecosystem
- Creating India as a hub for Research and Development
- Reducing compliance burden and providing certainty to taxpayers
- Part II: Transfer Pricing
- Part III: Customs
NASSCOM believes that the industry has the potential to achieve a 2X growth in annual revenue to reach USD 350 billion level by 2025-26. A favourable consideration to our suggestions shall provide the right impetus.
Our Pre-Budget Memorandum 2022-23 is attached for your reference. In case of any query, please write to tejasvi@nasscom.in and jayakumar@nasscom.in.
