More sops for IT sector in Budget

quot;This budget will see that maximum concessions are given to the IT industry8230; we will also find a way how we can help quick mergers of companies,quot; he added

Mahajan said India had already committed under WTO rules to lower taxes, but the government would try to hasten the process. India8217;s information technology firms are witnessing swift revenue growth, aided by a booming computer software services sector.

The Minister added that India needed to build crucial infrastructure such as telecom and power to boost technology firms. 8220;At the same time, we are tryingour best to convince various state governments to keep sales tax levels at zero8217; per cent on IT products to give boost to the sector,8221; Mahajan added.

Referring to the present trend of distinguished infotech experts going to developed countries for making it big there, Mahajan said the main objective of his ministry was to arrest the present trend of brain drain, and facilitate and provide an enabling environment for the brain power to grow and prosper within the country.

8220;Speed in policy decisions and providing necessary infrastructure were the essential ingredients for accomplishing the nations dream of becoming a knowledge superpower in a decade,8221; he said. 8220;We also think the sector8217;s development should be more broad based,8221; Mahajan added.

At present, about 60 per cent of software exports were by the top 10 companies, and about 25 per cent of exports were by three IT companies in the country, he said. 8220;In this context of infrastructure building, I ask the political parties not to pose anyproblems for such projects,8221; he said.Earlier, Nasscom chairman Atul Nishar said India8217;s telecommunications infrastructure had to be developed into a state-of-the-art system with higher capacities and larger bandwidths so that it can compete in the world arena on equal footing.

He said the report of a panel on venture capital funding, formed by market regulator Securities and Exchange Board of India SEBI, should be implemented soon. The group had suggested easier norms for offshore venture capital investors. 8220;The government should do away with the need for Indian courts to approve mergers of companies because that caused long delays,8221; he said.

During the fiscal 2000, Nasscom expects the IT industry to post revenues of Rs 35,700 crore 8.18 billion, up from Rs 24700.8 crore in the previous year. A Nasscom-McKinsey report said India8217;s computer software services firms would continue to contribute over 60 per cent of the total IT sector revenues in 1999/2000. The infotech firms have in recent yearsreceived favourable treatment from both central and state governments in the form of lower taxes, simpler policies and and end to state monopolies in the sector.