New Gujarat IT policy targets $15 bn revenue, 10 lakh jobs

The Gujarat government has set an ambitious goal of reaching $15 billion turnover in its IT and ITES sectors with $2 Billion export revenues between 2016-21.

“We hope to provide an environment and incentives for the industry in a manner that IT and ITeS sector can generate 10 lakh more jobs in the state,” state finance minister Saurabh Patel said, announcing the new policy for the sectors.

The scheme would include 25 per cent capital subsidy of up to Rs 25 crore on fixed capital investment in buildings and infrastructure facilities, excluding cost of land for horizontal development.

A capital subsidy of up to Rs 300 per sq ft would also be provided to vertical IT/ITES units.

“The developer of IT/ITES parks will also be eligible for 100% reimbursement of stamp duty and registration fee, besides lease rental subsidy of Rs 5-8 per sq ft depending on the number of hires in the company,” Patel said.

Other fiscal incentives would include interest subsidy, tax breaks and aid for building internal infrastructure for smaller units.

 “We want to attract a large number of smaller IT and ITES units, other than the big names. We will also support them in the market development as well as R&D,” the minister said.

Rejecting the notion that Gujarat has talent deficit in IT and ITES sectors, state Science & Technology Secretary Dhananjay Dwivedi said: “We have more than 60,000 engineers passing out every year. Gujarat also has big names in education, including IIM, IIT, NID, Centre for Environmental Planning and Technology as well as National Law School.”

He said the available talent needed to be harnessed with the right kind of ecosystem similar to that of manufacturing sector.
DH News Service

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