GTech demands Rs. 1,200 crores allocation for IT in State Budget


Trivandrum: Group of Technology Companies (GTech), the industry body of IT companies in Kerala, has sought of the Government an outlay of at least Rs. 1,200 crores for the IT industry in the forthcoming State Budget, against about Rs.300 crores in the previous one.

The recommendation was placed before Chief Minister, Shri Oommen Chandy during an interaction with the representatives of IT industry at the GTech Leaders’ Meet.

In a statement, V K Mathews, Chairman of GTech said, “The IT industry provides huge employment opportunities for the youth of the State. Hence the ecosystem needs to be scaled up and e-governance strengthened to widen the industrial base. It is important that the Government allocates a higher amount in the forthcoming State budget for IT. The industry would be disappointed if the outlay is less than 2% of the total budget. This need has been conveyed to the Chief Minister and we are hopeful of getting a positive response”

In his comments, CM said that the Government will focus more on ensuring adequate support to enterprises to promote sustainable entrepreneurship. This follows the government’s initiative to promote an entrepreneurial friendly eco-system in the State. He also said that his government would consider allocating a marketing corpus of Rs. 5 crores to support SMEs for sustainable business development activities. “The government will derive a scheme to benefit start-ups who are looking for a second phase of funding, after graduating from incubation centres”, he added.

Anoop Ambika, Secretary of GTech said, “Almost 80% of IT companies in Kerala belong to the SME sector, collectively employing over 25,000 people. Such companies have the potential to grow, but do not the resources for a sustained business development campaign overseas. ‘Global IT Connect’’, conceived by GTech, has been organizing trade delegations and has proven to be highly successful in giving global exposure to budding entrepreneurs, start-up companies and companies in the SME segment. However, the lack of a dedicated fund is an impediment in continuing this initiative”,

GTech also took up issues of social infrastructure development and the need for more effective mass transit systems in Thiruvananthapuram and Kochi, with the Chief Minister.

Kerala IT News