As the BJP-led Narendra Modi Government at the Centre settles down, the $21 billion Business Process Management (BPM) industry wants it to bring in policies that will drive growth in the sector and create jobs.
“We look to the new Government and Prime Minister Narendra Modi for further support and encouragement,” Nasscom BPM Council Chairman Keshav R Murugesh said in a release here.
BPM is the next big opportunity sector in India providing direct plus indirect employment to four million, and poised to reach USD 50 billion in size by 2020 from present USD 21 billion, said Murugesh, who is also Group CEO of WNS, a Mumbai-based (rpt) Mumbai-based leading BPO player.
Coming out with a wish-list for the Modi government, which will present its first Budget in a few weeks from now, Murugesh said it should withdraw retrospective tax laws and kill the notion that India discourages foreign investment.
The BPO industry veteran pushed for a tax amnesty encouraging Indians to bring in money lying in Swiss and other banks. This will shore up forex reserves significantly.
Murugesh sought withdrawal of exemptions in the Income Tax Act and doing away with them in the Direct Tax Code, a new regime being put in place. He called for pushing through with the implementation of Goods and Services Tax (GST).
The NDA Government should clarify position on FDI in retail and announce norms for privatisation as well as FDI in key sectors that impact infrastructure, he said.
The government needs to encourage the BPM and IT industries as they have already created direct and indirect jobs for 10 million people and logged in exports valued at nearly USD 110 billion, Murugesh said.
“With further support, we can make investments in tier 2 and 3 locations, drive skill building and convert India into a centre for IT and process innovation.”
The Centre can create four regional Special Innovation Centres, like the SEZs, where international companies can work with no tax outgo, get immediate visas for expats, access to VC and angel funding and establish a Silicon Valley-like culture inside these facilities, he said.