Don't be complacent, IT Secretary tells industry

BANGALORE: The government today told the export-driven IT industry not to be complacent, given the "rigorous turmoil" in key markets of the US and Europe.

At Bangalore IT.biz, Karnataka's annual flagship ICT event, Union IT Secretary R Chandrashekhar referred to recessionary trends and anti-outsourcing sentiment in the US, which accounts for 60 per cent of India's IT exports.

Europe, which contributes another 30 per cent, is in the throes of a deep economic crisis with serious structural issues in many of the countries in that region.

"With 90 per cent of these markets going through such rigorous turmoil, surely we cannot afford to be complacent", Chandrashekhar said.

He pointed out that with the STPI (Software Technology Parks of India) scheme (tax benefits) coming to an end for the IT sector in March, and SEZ scheme also facing some issues, registration of new companies has come down.

"Small and medium enterprises are certainly worried about their business prospects", Chandrashekhar said.