Software firms need stimulus

Software firms need stimulus

NEW DELHI (AFP): India's software industry has asked the government to slash red tape and reduce taxes in order to sustain 50 percent growth and achieve a US$50 billion export target by 2008.

Dewang Mehta, president of the National Association of Software and Service Companies (NASSCOM), said Tuesday the industry would be able to achieve a $6.25 billion revenue target in the current fiscal year, and $9.5 billion next year provided the government continued its support.

Mehta told a news conference the industry had sought a range of incentives from Finance Minister Yashwant Sinha in the forthcoming budget.

"The current need is to continue with the incentives, further simplify procedures, implement more economic reforms, (and) reduce the cost of computerization," he said.

He said the government should maintain a service tax exemption for the software sector and allow a five-year tax moratorium on e-commerce.