GTech calls for steps to develop IT industry in tier 2 & 3 cities

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Trivandrum: Group of Technology Companies (GTech), the industry body of IT & ITeS Companies in Kerala, has appealed to the State and Central Governments to proactively devise a long term strategy to ensure that the benefits of the IT industry are spread to the smaller cities and towns of India.

Over 90% of the IT exports of USD 86 billion for the year 2013-14 came from companies located in seven Indian cities. As a result, the 50 plus tier 2 & tier 3 cities are not enjoying the full benefits provided by the IT industry in terms of employment, living standards and all round development.

V K Mathews, Chairman of GTech, points out that growth of the IT industry in smaller cities and towns are essential to decongest the big cities, provide rural employment and promote an inclusive growth. “One policy change that can effectively be a game changer in this regard is the restoration of export benefits through the Software Technology Parks of India (STPI) scheme, at least for those companies in the tier 2 and tier 3 cities. Thousands of small IT units, especially those in the MSME sector will have funds to reinvest and grow, thereby creating additional employment. Also, large companies will be motivated to develop their base in smaller cities”.

It is widely felt that while large companies have outgrown the need to be supported through tax benefits, there are thousands of small IT companies which need funds for re-investment and increasing head count.

“We are extremely happy to see the thrust on entrepreneurship by the current government. GTech is currently exploring a fast track alternate model which will evaluate and incubate potential ideas in an extremely time critical fashion with very close supervision from industry leaders. GTech has also requested help of the government to set up an e-governance lab as part of this initiative, which will trigger innovations that will directly touch the day to day lives of the citizens of Kerala. Once piloted here, these solutions could be applied across the country. We are hopeful that the governments, both at the State and Centre, will support this initiative”, said Anoop P Ambika, Secretary, GTech.

Kerala IT News
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