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Apr 29, 2008


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Its a temporary relief that the STPI scheme has been extended by an year.

The industry wanted the scheme to be extended for many more years, but good sense prevailed and hopefully it will come to an end in 2010.

The positive impact of this sunset clause - Indian IT industry will have to focus more attention on innovation and productivity. It will also push the Indian IT service providers to focus their attention on the local Indian markets.

Till now, as the exports were tax exempted (and paradoxically, the revenues from Indian ops were to be taxed) - the impact of IT on Indian business environment had been negligible. Hopefully, the things will change for the better.


Subir Dhar

Dunno whether Indian governement is reading this blog :), but I can assure you that hectic lobbying had gone behind this announcement. And also more than the biggies like TCS, Infosys, Wipro, Satyam and HCL it is the small and medium companies in Indian IT scenario who would be more happy with this anouncement. Biggies too would stand gained under the same sun, though they had built enough capacity in the so called Special Economic Zones (SEZ's)to negate the tax impact on thier businesses. Overall a good news for the industry and sector in the sub-continent.

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