Group of Technology Companies (GTech), the industry body of IT companies in Kerala, has sought an outlay of at least Rs 1,200 crore for the IT industry in the forthcoming state Budget, against Rs 300 crore in the previous one. The recommendation was placed before Chief Minister Oommen Chandy during an interaction with the representatives of IT industry at the GTech Leaders' Meet.
"The IT industry provides huge employment opportunities for the youth of the state. Hence, the ecosystem needs to be scaled up and e-governance strengthened to widen the industrial base. It is important that the Government allocates a higher amount in the forthcoming state Budget. The industry would be disappointed if the outlay is less than 2 per cent of the total Budget. This need has been conveyed to the chief minister and we are hopeful of getting a positive response," said VK Mathews, chairman of GTech.
Chandy said the government would focus more on ensuring adequate support to enterprises to promote sustainable entrepreneurship.
Currently, Kerala Financial Corporation offers a collateral free loan of a maximum of Rs 20 lakh to start-ups.
He also said his government would consider allocating a marketing corpus of Rs 5 crore to support SMEs for sustainable business development activities.
"Almost 80 per cent of IT companies in Kerala belong to the SME sector, collectively employing over 25,000 people. Such companies have the potential to grow, but do not have the resources for a sustained business development campaign overseas. Global IT Connect, conceived by GTech, has been organising trade delegations and has proven to be highly successful in giving global exposure to budding entrepreneurs, start-up companies and companies in the SME segment. However, the lack of a dedicated fund is an impediment in continuing this initiative," said Anoop P Ambika, secretary of GTech.
GTech also took up issues of social infrastructure development and the need for more effective mass transit systems in Thiruvananthapuram and Kochi with the chief minister.
"The IT industry provides huge employment opportunities for the youth of the state. Hence, the ecosystem needs to be scaled up and e-governance strengthened to widen the industrial base. It is important that the Government allocates a higher amount in the forthcoming state Budget. The industry would be disappointed if the outlay is less than 2 per cent of the total Budget. This need has been conveyed to the chief minister and we are hopeful of getting a positive response," said VK Mathews, chairman of GTech.
Chandy said the government would focus more on ensuring adequate support to enterprises to promote sustainable entrepreneurship.
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This follows the government's initiative to promote an entrepreneurial friendly eco-system in the state, he added. The government would derive a scheme to benefit start-ups, who are looking for a second phase of funding, after graduating from incubation centres.
Currently, Kerala Financial Corporation offers a collateral free loan of a maximum of Rs 20 lakh to start-ups.
He also said his government would consider allocating a marketing corpus of Rs 5 crore to support SMEs for sustainable business development activities.
"Almost 80 per cent of IT companies in Kerala belong to the SME sector, collectively employing over 25,000 people. Such companies have the potential to grow, but do not have the resources for a sustained business development campaign overseas. Global IT Connect, conceived by GTech, has been organising trade delegations and has proven to be highly successful in giving global exposure to budding entrepreneurs, start-up companies and companies in the SME segment. However, the lack of a dedicated fund is an impediment in continuing this initiative," said Anoop P Ambika, secretary of GTech.
GTech also took up issues of social infrastructure development and the need for more effective mass transit systems in Thiruvananthapuram and Kochi with the chief minister.