IT industry to grow despite glitches, says IT Secy

The government is confident that the country's IT industry would continue to grow fast and views the Satyam fiasco or the bar on some IT firms from doing business with the World Bank as a minor glitch.

"Satyam is a specific instance and the the industry's health is good, which is growing at more than 20 per cent...World Bank is not a technology issue at all. Its not that there was anything wrong with the technology," IT Secretary Jainder Singh told reporters on the sidelines of a CDAC event here.

"The industry is doing well. Because of the global slowdown, there is some slowness in which the new contracts are coming but by and large the position is not alarming," he added.

Asked if the client's faith will be shaken post the recent developments, Singh said, "It's a single issue and you can't paint everybody with the same brush."

Talking about the extension of the Software Technology Parks of India (STPI) scheme, Singh said that he was hopeful of the move.

"Its enforced up to March 2010. For further extension, we are hopeful, but it is a government issue. The industry is looking for it but it is a decision the government must take," he said.

Under the STPI scheme, a 10-year tax holiday is granted under Section 10A of the I-T Act, which can prove to be a boon for smaller IT companies who cannot afford fresh capital investment to move to SEZs.

The extension is being sought by players to boost the IT industry, which has become one of the biggest casualties of the global financial crisis.