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The IT sector is optimistic about a single party coming to power but say that lot more needs to be done to fuel growth.
The victory of Congress in Karnataka has made corporates optimistic but most of them want action rather than rhetoric.
S. Gopalakrishnan, Executive Co-Chairman, Infosys and President of CII, said that he hopes that the new Government will focus on driving industrial growth resulting in economic prosperity and job creation within the State.
“I am glad to see a clear verdict from the elections as it paves way for a stable government in Karnataka,” he added.
“This is a clear anti-incumbency verdict against corruption and political instability and we are happy to see a clear mandate in favour of Congress, said Kiran Mazumdar Shaw, Chairman and Managing Director of Biocon.
Amongst a laundry list of issues faced by the State, the biggest one is around job creation. While there has been an effort to bring electronics manufacturing in the light of slowing software exports, action needs to be stepped up.
Early last year, the Government had plans to attract investments to the tune of Rs 90,000 crore for attracting cluster based electronic manufacturing. The proposed project would generate about 1.1 million direct and 2.7 million indirect jobs for the 1.2 million residents.
The project had evinced interest from about 25 Taiwanese companies which were in advanced stages of finalising a cluster of electronic manufacturing units but are yet to make a decision, due to bureaucratic hurdles, according to an electronic manufacturer.
“There is a need to create jobs in the backdrop of a slowing economy,” said Harish H.V, Partner, Grant Thornton, India. Also, the industry feels that Micro, small industries and entrepreneurs should be encouraged to aid growth and create jobs.
“It would benefit the state if an environment that is conducive for new business formation and entrepreneurship is encouraged by the government,” said Gopalakrishnan.
Others agree. “The Government now has an opportunity to create policies for startups and to promote growth of business in tier 2 cities,” said Krishnakumar Natarajan, CEO & MD, Mindtree.
According to Suresh Narasimha, CEO & Founder, TELiBrahma, there is a need to provide incentives for innovation (like grants, industry academia partnership etc.) and encourage entrepreneurship.
Big multinational employers like IBM, HP, Dell, Google and others do not comment on a country’s political scenario.
>venkatesh.ganesh@thehindu.co.in
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