The National Association of Software and Services Companies (Nasscom) has asked the Union Government to set up a ₹500-crore Technology Entrepreneurship Fund to attract technology ideas into the country.

Addressing a press conference here on Friday, Nasscom President R Chandrashekhar said countries like Singapore and Canada have taken similar measures to attract talent and entrepreneurs. He said this was one among several recommendations made by the association to the Government ahead of the Union Budget, adding that nurturing start-up companies was very important. About 200 big IT firms contributed 80 per cent of the IT revenues of $118 billion, while about 15,000 small and start-up firms contributed the remaining 20 per cent.

He also felt that tax on angel investments must go.

“Angel investors take a lot of risk on their investments by funding start-ups and taxing them would make it difficult for them,” he said.

The association reiterated that the growth rate for the IT industry would be in the range of 13-15 per cent for the financial year 2014-15.

“Last year we had projected a growth rate of 12-14 per cent but the industry could achieve 13.2 per cent,” he said.

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