Seeking to make a strong case for continuation of the 10 year scheme introduced in 1999, Member of Infosys Board, T V Mohandas Pai said the STPI scheme has ‘benefitted’ the country like no other since Independence, and the IT industry has created two million jobs.

“The IT industry gives the largest number of jobs for young Indians — 430,000 jobs (current annual estimation) for the educated middle  class. This is a very large lobby. It’s a vocal class”, he told reporters in response to questions. “If all of us start looking at  pastures outside like creating jobs in place like Philippines, China, Eastern Europe, Mexico and some other countries, there will be challenges ”, Mr Pai said.

Cautious stance

There is a five-year tax holiday scheme on the lines of STPI in the Philippines, three year one in China and five year one in Mexico, while there are tax holidays for the IT industry in Vietnam as well. “India should not lose out.”
Mr Pai said tax benefits enjoyed by IT companies under STPI scheme is not “very large”. “It is a very important industry and policy makers need to be cautious when they look at this issue (STPI scheme)”, Mr Pai said.