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Tax sops must to encourage R&D

By Kamesh Ramamoorthy, COO, Ramco Systems
March 15, 2012 10:41 IST
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Indigenous product companies that are heavily investing into R&D in India are eventually creating assets for the country.

Our products have all the capabilities to serve the global market because we adhere by every international norm and standard. Such companies should be listed as preferred vendors for Government and public sector projects, provided that they match the required technical and product expertise criteria.

Certified indigenous product companies can also be given a fillip through investment allowances that will encourage them to continue investing in R&D.

Government should provide necessary infrastructure and tax exemptions to encourage product development and R&D from India.

Strong focus on promoting Small and Medium Enterprises as they are the torchbearers of the future economy. Initiatives such as

Bringing back the special subsidies given to SMEs for investments in IT will help in faster adoption of IT among the SMEs.

Easy loans, and better interest rates

Single tax code that will ensure common tax structure for software and commodities will help in substantial savings. This will simplify the tax structure and make it easy to interpret for all

A portion of the education cess collected should be utilized for automating the entire back office of Universities and colleges

Setting up of finishing schools in collaboration with the Industry will ensure the talent is industry ready.

Union Budget 2012-13: Complete coverage

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Kamesh Ramamoorthy, COO, Ramco Systems
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