Gujarat grants industry status to IT & ITES sector

Information Technology

Information Technology

The Government of Gujarat has granted industry status to Information Technology (IT) and Information Technology-Enabled Services (ITES), enabling companies working in the sector avail various government incentives at par with sectors like manufacturing, media reports said.

The decision, which is aimed at boosting the growth of the sector in the state, will allow IT and ITES companies to avail incentives on land acquisition and lower power tariffs.

Besides Gujarat, other states who have granted industry status to IT and ITES sector include Maharashtra, Andhra Pradesh and Karnataka.

Gujarat’s new IT policy (2016-21) has the provision of providing special monetary incentives for setting up IT/ITES parks and units in the form of capital subsidy, interest subsidy, reimbursement of VAT, reimbursement of employer’s contribution to Provident Fund, power tariff subsidy and reimbursement of electricity duty, reimbursement of stamp duty and registration fee on land/office space lease or purchase.

The recent announcement would allow the state to attract more investment in the IT and ITES sector, which is estimated to have an output of around Rs 1,500 crores. IT companies in the state are eyeing a growth of 20 percent per annum.