People Web International

By Ashis Dutta, PWI Reporter Karnataka

BANGALORE, INDIA - The world over, the city of Bangalore in India has become synonymous with Information Technology (IT). So much so that the term ‘Bangalored’ has been coined in the United States and also inspired a soap opera there.

But a question mark has been put on the city’s remarkable technology journey since the year 1991. The reason being the recent Union Budget where the fiscal incentive of tax rebate so far enjoyed by the IT industry has been withdrawn. The effect is a whooping 30 % plus cess and surcharge in tax.

Mr. Vivek Kulkarni, a former top bureaucrat responsible for the growth of IT in Bangalore, has been critical of the government’s policy of withdrawing the tax benefit of the IT industry terming it as killing the goose laying golden eggs.

Kulkarni puts forth the example of China, which, despite its phenomenal growth from a struggling economy in 1978 to the manufacturing hub of the entire world, continues to offer tax incentive to the manufacturing industry.

Due to this tax burden, the most affected among the IT fraternity in India is going to be the small and medium enterprise (SME) sector, as large IT companies have already relocated most of their operations to the tax free SEZ (Special Economic Zone). For an industry which provides high quality employment to more than two million people and supports secondary and tertiary employment of another ten million, the tax has certainly come as a dampener.

As for the city of Bangalore, once the fastest growing city of Asia, whose predominant economic activity hovers around IT – be it real estate or retail, transportation or recreation, it is to be seen as to how the city copes with this new fiscal burden.

-- by Ashis Dutta - PWI Reporter Karnataka - karnataka@peoplewebinternational.com

PUNJAB, PAKISTAN - Technical Education and Vocational Training Authority (Tevta) in collaboration with Microsoft has planned to set up 300 IT academies to offer certified short term computer courses. It was mentioned at a seminar held in this connection that these courses will be internationally recognized and will also be much less in cost as compare to the courses provide by the private institutions.

The participants of the seminar emphasized the point that establishment of IT academies are the requirement of today’s need and thus it will help in meeting the challenges of the future by creating employment options for the students.

Tevta and SME Business Support Fund, signed an MOU to provide short and long term internet based distant learning courses to train entrepreneurs. It was stated by the officials of both the organizations that approximately 2,000 people will be annually trained through these courses. The courses will also train craftsmen, cutters and designers in the field of gem and jewelry.

-- by PWI Regional Reporter Punjab Pakistan - punjab.pakistan@peoplewebinternational.com