In a major boost to the IT & ITeS sector of the state, the Gujarat government has accorded industry status to the sector. The decision will enable players in IT space to avail the same benefits as enjoyed by companies engaged in manufacturing, reports, The Times of India.
The state and mines department have already issued a notification granting industry status to the sector. With this, Gujarat now joins the league of states like Maharashtra, Andhra Pradesh and Karnataka.
According to industry players as reported by TOI, the status will not only enable IT/ITES companies to avail incentives on land and electricity but also help them attract more investments and spur growth of the sector. “Gujarat Industrial Development Corporation (GIDC), which has so far developed industrial estates for manufacturing, will for the first time establish estates exclusively for IT/ITeS industry. These proposed estates will have plug-and-play faculties,” the source said. Although the state IT/ ITeS policy was unveiled in 2016, the government is far from achieving the ambitious goals set in the five-year policy, which also included raising investment 10 times and increasing the industry turnover and exports to $15 billion and $2 billion, respectively.
Majority of the companies in Gujarat are small or mid-sized companies and clocking a year-on-year growth of 50% to 100%. The industry status will propel growth of the sector and attract more investments into the state. Given the fact that Gujarat has lagged behind other states like Karnataka, Maharashtra and Andhra Pradesh in developing IT industry within the state, Gujarat government is now leaving no stone unturned to promote the industry.
Although the state IT/ ITes policy was unveiled in 2016, the government is far from achieving the ambitious goals set in the five-year policy, which also included raising investment 10 times and increasing the industry turnover and exports to $15 billion and $2 billion, respectively.