Foster entrepreneurship, says Murthy

There is a need to give an impetus to the manufacturing sector as it has a capacity to provide large number of jobs to the semi-skilled and semi-literate population. This will also reduce the dependence of large number of people on agriculture for employment. However, this will require a new set of policy framework, said Infosys Technologies' chairman and chief mentor NR Narayana Murthy.

Addressing the students of the Indian School of Business (ISB) on ‘institution building’, he said the booming service sector had stunted the growth of other sectors, particularly manufacturing.

The supply chain position should be improved to increase the efficiency and also create new infrastructure to shift the load to manufacturing from agriculture, which is now giving direct or indirect employment to about 650 million people, he said adding that youth should take to entrepreneurship to create employment for the masses.

Murthy evaded a direct reply to a query from a student on how Infosys would cope with revenues after the tax regime to the IT industry ends in 2010. He said the company would focus on strengthening its sales wing to bring in 20 to 25 per cent net after allowing for taxes.

It would also enhance the productivity through new products and services. It has already communicated to the investors the kind of revenues it would get minus the tax sops. It has also computed the amount it would need to cough up for the customs duty in 2010.

Infosys, to deal with skill shortage, has launched ‘Campus Connect’, a skill development programme with engineering colleges. It has so far partnered 350 engineering colleges for the programme.