NASSCOM president said that restrictions and constraints are coming up in cases of movement of technically skilled persons, data, which stand outside the scope of trade agreements.
By Sai Nikesh D
NASSCOM (National Association of Software and Services Companies) on Friday, called upon the need to protect India’s interests, even as the World Trade Organization (WTO) endorsed to change the 18-year old Information Technology Agreement (ITA).
“What is happening in trade is happening, but restrictions are coming up outside the trade agreements. I think it is important that we need to ensure that protect our interests in service and technology even as these global trade agreements are reached,” said NASSCOM president, R Chandrasekhar, speaking on the sidelines of a summit organized by Indian Chamber of Commerce (ICC) in Kolkata.
These trade agreements give the global companies an access to India’s market, but, ‘what are we getting anything in return and whether our services are getting the reciprocal access’, he questioned.
According to the NASSCOM president, restrictions and constraints are coming up in cases of movement of technically skilled persons, data, which stand outside the scope of trade agreements.
NASSCOM president also informed that the hiring rate of Indian IT sector is expected to lag in the current fiscal year and is expected to grow 6% in FY’16, declining from a level of 9% in FY’15.
Santosh Shukla, president, All India Information Technology Association (AIITA), said, “IT sector will see a 6% growth in hiring in FY’16 against 9% in FY’15 and in this regard, AIITA opines that hiring of HR would undergo some changes, which would surely have impact over growth of Indian IT sector.”
“Key issues behind expected decline in the hiring rates could be underlined, as loss of concentration over offshore outsourcing projects, which constitutes lion’s share of IT sector and deteriorating productivity have affected the Indian IT very badly, especially the human resource function,” he noted.
He further informed that key challenges faced by the Indian IT sector are mostly of infrastructure facilities and felt that the ‘level of governmental support to the industry must be increased in respect from basic industrial facility to international laws’.
The Basic support that the AIITA is expecting from the government is towards the wellness of IT sector with proper power supply, proper land for setting up IT industries and continuous bureaucratic cooperation.
Among other key issues which the AIITA would like to raise on behalf of the IT industries includes ‘inclusion of IT experts in policy making committee, encouraging small and medium level IT industries through state-based projects, open opportunities to NRIs, among others, he added.
As a result of the updation of WTO’s ITA agreement, 200 products including computer software and software media, video game console, printer ink catridges, GPS and medical devices, among others, would be added to the list of goods covered by zero tariff and duty free trade. However, India is yet to be a signatory to the new ITA.
This article was published in The Dollar Business on July 25, 2015