NASSCOM in talks with Obama government on US visa issues

Ahmedabad

Leading IT Industry body NASSCOM today sounded positive about the recent upward trend in the sector and said that if it continued for a couple of quarters then it might consider a mid-term revision of its earlier projection of 12 to 14 percent growth for the current fiscal.

It also said that it was in talks with the Obama administration with regard to the US visa issue to the Indian IT professionals.

Addressing a press conference here today, NASSCOM chairman BVR Mohan Reddy said,’ of course there was great news coming from the sector. But we must wait for a couple of more quarters. We announce the projections in February every year and don’t normally revise it mid way. But if the trend continues we would meet in November for a review.’

He, however’ did not sound very optimistic about any great increase in job opportunities in the sector in the coming 2 to 3 years. ‘Mainly due to three reasons, first the technical shift, secondly more and more automation coming up and thirdly the economic situation, the job opportunities are going to be more or less the same. The sector provided job to 230000 to 250000 engineers last year and it will be the same for the year ahead, I don’t see a substantial change in it in the next 2 to 3 years,’ Mr. Reddy said.

The NASSCOM Chief stressed on the need to strongly promote the small start-ups as according to him 60 percent of the jobs world over came from SMEs and start-ups. ‘It is not the big ones but the smaller companies and start-ups that give more job. ‘In the next five years India with the largest working population in the world would need to create a very large number of job opportunities. This can’t be done by the government alone. The government can create the eco system for that. The NASSCOM was doing commendable job for the mentoring of start-ups in Bangalore and want to replicate it all over,’ he said.

To a query regarding the US visa issue, Mr. Reddy said his organisation was seriously engaged in talks with the Obama administration and even doing strong lobbying to favourably resolve the issues. ‘We have made a number of representations before the US government which was looking at it in a holistic way. We are also in talks about the totalisation treaty which includes tax and social security issues as well. WE will also issue a report in September showing how IT industry in India can create more jobs in the US ‘ he said.

The NASSCOM chairman also said that the Indian government should take care of the tax issues and must resolve it quickly. He said that not doing so like killing a golden goose (the start-ups). The complexity of tax issues was also making the start-ups vulnerable to their turning in to a tool of creation of black money.