The resilient Indian IT industry has shared the grave concerns expressed by Infosys’ chairman emeritus N R Narayana Murthy and Wipro chairman Azim Premji on policy paralysis in the UPA government holding up reforms and growth.
“Our concerns are no different from what Murthy and Premji have expressed. Key policy issues and executive decisions pertaining to our industry have been pending for long. They require urgent attention of the government if we have to remain competitive in a challenging environment,” Som Mittal, president of the National Association of Software and Services Companies ( Nasscom), told IANS.
Along with IT bellwethers Tata Consultancy Services ( TCS), Infosys and Wipro, the $100-billion Indian software and services industry contributed significantly to the Indian economic growth story, creating over two million direct jobs and accounting for 25 per cent of the country’s merchandise exports, generating $69 billion in fiscal 2011-12.
Alarmed over the failure of the federal government on many fronts and its prevarication over taking tough or quick decisions to revive growth, Murthy was quoted recently as saying that he was saddened by the state of the Indian economy and the crisis of confidence gripping the country due to lack of “big ticket” reforms since 2004.
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“There was a huge expectation on the introduction of many reforms by the (UPA) government. There was a lot of confidence that India would do whatever was necessary because the person ( Manmohan Singh) who was the face of economic reforms in 1991 is our current prime minister,” Murthy told global financial services firm Morgan Stanley recently.
Echoing Murthy, Premji lamented how policy paralysis was hurting investor sentiment. “We are working without a leader as a country,” Premji was quoted as saying at his company’s meeting with analysts in Mumbai.
Murthy, who co-founded the $7-billion global software major in the 1980s, observed that the government decision to apply tax laws retrospectively had sent a wrong signal to overseas firms on investing or doing business in India.
via Infosys, TCS, Wipro created 2 million jobs in FY 2011-12 – Times Of India.