The Information and Communications Technology (ICT) sector contributes to more than 5 per cent of India’s GDP and holds the potential to grow by 1 per cent every year.
According to the National Council of Ad vanced Economic Research (NCAER), the input-output multiplier for the IT sector is close to 2.5 and for every additional annual increase of 1 crore rupees in the IT sector, 360 new jobs are created. This underscores not only the positive correlation of the growth in the IT sector to the overall economic progress of the country, but also establishes its immense potential for creating jobs. It is important to review the high import duty of 8 per cent on packaged software imposed last year.
At this stage, when IT will play a crucial role in the government’s charter of inclusive and sustainable development, this tax is retrograde. Also, the high import duty of 37 per cent on gaming products is slowing the growth of this industry. India is recognised as an emerging hub for animation and development of computer games and while many of the games and animation developed in India finds massive usage and adoption elsewhere, our own people are largely deprived of their efforts.